Termination Payments – recent changes, but don’t forget Rule Number 1

Paul Tucker discusses discusses termination payments and a reminder of the changes that have occurred in the past three years

The tax treatment of termination packages is complex. There have been some significant changes over the past few years. In particular:

From 6 April 2018
- The introduction of the Post Employment Notice Payment (PENP) charge; and
- The legislation in respect of injury to feelings
From 6 April 2020
- New National Insurance (NI) legislation

Rule Number 1

It is always important to remember the first rule. The £30,000 tax exemption is not always due!

Consider each element

8 March 2021

About the author

Paul Tucker

Paul is part of UNW’s Employment Tax team. He has extensive experience, having spent over 40 years working in tax, and advises clients on all aspects of employment tax and national insurance, providing practical and technical support. As well as being a Chartered Tax Adviser he is also a member of the Chartered Institute of Taxation’s Employment Taxes Committee.

Paul can be contacted on 07392 870 199 or paultucker@unw.co.uk

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Termination Payments – recent changes, but don’t forget Rule Number 1

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Paul Tucker

2016/17 P11Ds

Dispensation abolition

Business expenses

A focused Budget with a long tail

Getting ready for the deadline

Get ready for major changes

To close or not to close?

Further extensions to support schemes