
Although the first £30,000 of a termination payment will remain exempt from income tax and NICs, from April 2019, termination payments over £30,000 will be subject to employer NICs. So, with employer NICs at 13.8%, this change will lead to increased costs for employers for large termination payments. It is anticipated that this tax will be collected in ‘real-time’, as part of the employer’s standard weekly or monthly payroll returns and remittances to HMRC.
For further details contact Paul Newson