HMRC is consulting until 16 October 2015 on simplifying the tax and NICs treatment of termination payments, following the Office of Tax Simplifcation’s July 2014 report on employee benefits and expenses. Proposed options include:
removing the distinction between contractual and non-contractual payments;
aligning income tax and NICs treatment;
linking exemption to statutory redundancy;
new exemption linked to years of service and taking account of wrongful/unfair dismissal or discrimination; and
removal of exemption where salary-sacrifice arrangements exist.
HMRC is consulting until 16 October 2015 on simplifying the tax and NICs treatment of termination payments, following the Office of Tax Simplifcation’s July 2014 report on employee benefits and expenses. Proposed options include:
removing the distinction between contractual and non-contractual payments;
aligning income tax and NICs treatment;
linking exemption to statutory redundancy;
new exemption linked to years of service and taking account of wrongful/unfair dismissal or discrimination; and
removal of exemption where salary-sacrifice arrangements exist.
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