Imminent changes to termination payments

31st March 2020

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.

Enjoy That? You Might Like These:


23 February -
The practice of “fire and rehire” or the technical term, dismissal and re-engagement on new (usually less favourable) terms) has become increasingly controversial over the past few years. It can... Read More


8 February -
As can be seen from our recent Looking ahead to 2024 briefing there is no let-up in the pace of employment law developments. Take a moment to consider our Winter... Read More


7 February -
We are delighted to invite you to join us for our first Employment webinar of 2024 on 19 March 2024 at 10am when we’ll be looking at the question of... Read More