How Will the Taxation of Termination Payments Change?
Postponed from April 2019 to April 2020
The Government is consulting on changes to termination payments which will see a widening of payments which qualify for Income Tax and National Insurance.
Termination payments in excess of £30,000 will be subject to employer Class 1A National Insurance contributions. Employee payments in excess of £30,000 will still attract tax and no National Insurance contributions, as they do now. The abolition of Class 2 NICs and changes to Sporting Testimonials have also been postponed.
Do you know when the latest complex legislation changes come into effect? And are you aware of the work required to ensure your business is fully compliant? This guide includes advice on employment law updates as they happen, with month-by-month advice on all updates in an easy-to-read format.