New rules are coming into force on 6 April 2018.
The tax treatment of termination payments can be complex, not least because a termination package typically comprises several different elements, which may be treated differently for tax and national insurance purposes.
In a bid to simplify matters, the rules for taxing payments made on the termination of someone’s employment are changing from 6 April 2018.
The rules introduce a new approach and reclassify some payments currently benefitting from the £30,000 exemption as earnings (with the result that benefit of the exemption is lost). More…