PILON etc

PILON etc

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My FDA union rep has sent me this:

Note: The first £30,000 of the compensation payment is tax-free and the remainder is taxed at the appropriate rate. HMRC have recently confirmed a change to the tax treatment of compensation lump sums which XXXXXX must apply to payments from 6 April 2011.

From 6 April 2011 HMRC have confirmed that XXXXXX must apply tax on a “month 1” basis using the applicable tax bands. This treats the balance of the compensation payment as if the individual earned that amount each month. The tax bands from 6 April 2011 are as follows:

£0 - £35,000 @ 20% = maximum of 2,917 payment in one month.

£35,001 - £150,000 @ 40% = maximum of £9,583 per month (£12,500 less £2,917)

Over £150,000 @ 50%

The scheme member would have to apply to HMRC to assess the correct amount of tax payable claim any excess tax paid. This change to the tax treatment will reduce the amount of compensation that many staff expect to receive, and will involve them in having to claim refunds from HMRC.

SHOCKING ENGLISH COULD HAVE WRITTEN IT MYSELF

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By Peter The Painter
26th Oct 2011 17:22

First Division ??

Just goes to show how bad standards are outside the Premier League. I think you will find the First Division is now tier 3.  

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