Hi
If I agreed to terminate my employment in exchange for payments in lieu of notice, holiday and bonus, does the payment have to be taxed in the same tax year as the termination of employment?
For example, assuming my employment terminates on the 1st April 2019 and the payments were made on the 10th April 2019, should my employer tax it in the year 2019/2020 or are they obliged to make a year end adjustment and treat it as a payment made in 2018/2019?
From what I have been able to gather so far, the bonus is taxable in the year it is received. So if it was paid on the 10 April it should be taxed in the year 2020/21. Is that right? But I can't find any information about the payments in lieu of notice and holiday.
This seems to be a rarely asked question so I hope somebody knows the answer! Many thanks for your valuable help.
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