Payments made to former employees: regulations

The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations, SI 2011/1054, amend the PAYE regulations so that:

• payments made by an employer to an employee after their employment has ceased, which are not included on the form P45, will be taxed using the ‘0T’ tax code on a non-cumulative basis; and
   
• payments made in connection with employment-related securities made after the employee has left the employment will be taxed at the basic rate.