New rules for termination payments
05 March 2018
On page 7/8 in Agent Update 64 there is an article ‘New rules for termination payments made on, or after 6 April 2018’. Below is the amendment that has been made on page 8 to remove the ‘non-statutory’ element of redundancy payments.
Original
PENP calculations should not be applied to statutory and non-statutory redundancy payments. These payments are always taxable as specific employment income and subject to the £30,000 exemption where appropriate.
Revised
PENP calculations should not be applied to statutory redundancy payments. These payments are always taxable as specific employment income and subject to the £30,000 exemption where appropriate.