Post-employment notice pay (PENP) is a concept that was introduced in legislation from 6 April 2018.  This effects whether payments at the end of an employment fall within the £30,000 tax free amount.  Prior to these new rule payments in lieu of notice (PILONs) could be tax free if non contractual.  Now, any element that relates to notice period, whether contractual or not, will be subject to tax.

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