Proposed Changes to Taxation of Termination Payments

HM Revenue & Customs has published draft legislation changing the taxation of termination payments, intended to come into force April 2018. The main changes are:-

• make all PILONs (payments in lieu of notice) taxable, even if they are non-contractual;

• require payment of employer NICs on sums over £30,000 (not currently payable).

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