New taxation of termination payments now in force

Posted on 2 May 2018 by The Manufacturer
Termination Payments Stock Image

On 6 April 2018, the rules relating to termination payments, tax and NICs changed. EEF’s senior legal adviser, Sara Meyer, discusses the new legislation.

The government has revised the way payments on termination of employment are taxed.

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The following changes came into force for the new tax year, starting on 6 April 2018: All payments in lieu of notice are to be treated as earnings subject to tax and class 1 (employer and employee) national insurance contributions (NICs)…

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