15 May 2016

A question about : ESA affected by PILON?

I am on extended sick leave and as my employers stopped paying me in June, I am claiming ESA at Ј72pw.
Meantime I have been invited to apply for VR which I have done and been accepted, and part of the settlement includes a payment for three months notice(Payment in Lieu of Notice),
So do I advise authorities and my ESA is stopped for this period or what happens? I consider it unlikely that I will be fit for work again in that period.

Also, my redundancy and pilon payments have been taxed at 40%+, and so far I have been unable to obtain an answer on this as my earnings in the tax year are only about Ј10K so vast majority of payment should have been taxed at 20%, taking into account first Ј30K of redundancy tax free?

Any advice gratefully received.

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