CWG2: Further guide to PAYE and National Insurance contributions

06 November 2017

The section in the CWG2 on trivial commutation payments relating to registered pension schemes has been amended to clarify the details about commutation.

Where a trivial commutation payment is taxable, in whole or part as pension income, then tax has to be deducted through PAYE from the taxable amount.

The amended guidance clarifies information about:

  • Commutation where pension payments have already started

  • Commutation payment where pension payments haven’t started

 

See section 2.2.5 CWG2: Further guide to PAYE and National Insurance contributions