Redundancy pay
UK tax glossary · Last reviewed: April 2026
The first £30,000 of qualifying redundancy payment is usually tax-free. Amounts above that are taxable as employment income.
Payments in lieu of notice (PILON) are generally taxable in full.
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TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.