Termination payments (policy factsheet)
07 July 2020
Members of the CIPP can now view the new factsheet detailing key information surrounding termination payments.
For many, the tax-exempt figure of £30,000 immediately comes to mind when taking into consideration the tax treatment of a payment, in relation to the termination of employment. As we know, this is no longer the case, as it cannot be assumed that the £30,000 exempt threshold automatically applies.
In 2018, HMRC introduced changes that would affect the treatment of tax and National Insurance Contributions (NIC) on all termination payments made to an employee. From 6 April 2020, Consideration also needs to be made for employers’ Class 1A NICs on any termination payment made over £30,000.
Members of the CIPP can view this factsheet now - https://www.cipp.org.uk/resourceLibrary/policyfactsheet-terminationpayments.html