Hi, I was made redundant and received PILON pay of 12 weeks, my last wages and a serverence/redundancy payment.
Wages and PILON pay after tax and NI £3556
Redundancy pay & 8335.
My IVA says 6 months of redundancy pay but I have being sent a demand to pay £5350 into my IVA. They have used my wages and notice pay and added it to the redundancy pay to work out my payment. They have said my notice pay and last wages are part of my redundancy pay and I have to pay this amount based on my last total payment into the bank of £12807.
By law PILON pay is now classed has income from April 2018 and must be taxed and NI is payable. It does not form part of my redundancy pay. My benefits are now worked out using the notice pay has if I was working until the end of the notice period.
What is correct regarding redundancy pay and notice pay? IVA protocol says only the redundancy pay is classed has a windfall payment and anything over 6 months is payable.
The IP's staff are insisting they are correct.
I was told differently when the situation started and given a low figure based on my redundancy pay and nothing else.
Help needed has my benefits are very low now because of PILON pay.
Payment in lieu of Notice is part of the redundancy package and, whichever way you look at it, is income over and above that which you actually worked for.
I cannot comment upon the fine oints of the law, but would, in your IP's place, treat the whole package as one, unless convinced otherwise. Naturally the sum taken should be calculated after the deduction of the relevant tax and N.I on the PILON portion.
For informed advice you are going to need to speak to a solicitor with experience in both employment and insolvency. The costs of such advice would probably far outweigh the benefits. Maybe CAB might be worth a visit.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk