The Social Security (Contributions) (Amendment No. 2) Regulations, SI 2018/257, apply new NICs rules to payments-in-lieu-of-notice and protect certain third-party employers from liability to NICs under the disguised remuneration loan charge.
The regulations apply a class 1 NICs liability to all payments-in-lieu-of-notice that fall within the new definition of ‘post-employment notice pay’, introduced by F(No. 2)A 2017, which will cease to benefit from the £30,000 tax-free threshold with effect from 6 April 2018.
In addition, the regulations ensure that host employers who were not party to certain avoidance arrangements will not be liable for secondary class 1 NICs arising in connection with the disguised remuneration loan charge from 5 April 2019. A draft of this latter provision was annexed to the December 2017 technical note outlining the disguised remuneration measures in Finance Bill 2018.
The Social Security (Contributions) (Amendment No. 2) Regulations, SI 2018/257, apply new NICs rules to payments-in-lieu-of-notice and protect certain third-party employers from liability to NICs under the disguised remuneration loan charge.
The regulations apply a class 1 NICs liability to all payments-in-lieu-of-notice that fall within the new definition of ‘post-employment notice pay’, introduced by F(No. 2)A 2017, which will cease to benefit from the £30,000 tax-free threshold with effect from 6 April 2018.
In addition, the regulations ensure that host employers who were not party to certain avoidance arrangements will not be liable for secondary class 1 NICs arising in connection with the disguised remuneration loan charge from 5 April 2019. A draft of this latter provision was annexed to the December 2017 technical note outlining the disguised remuneration measures in Finance Bill 2018.
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