Imminent changes to termination payments
Employment law solicitor Madeleine Mould has written an article on the imminent changes to termination payments, which was first published in HR Magazine on 27 March.
From 6 April a new employers’ class 1A National Insurance contribution (NIC) of 13.8% will be chargeable on any termination payments in excess of £30,000. HM Treasury estimates that the change will affect around 20% of termination awards and the change will mean increased costs and administration for many employers.
This brings the treatment of termination payments for NIC purposes in line with the rules on the income tax treatment of termination payments, where income tax is already payable on termination payments above this threshold.
She looks at employment that terminates on, or after, 6 April 2020, real-time collection and gives advice to employers.
Read the article in full here.
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