Philip Moss Partner and Tracey Rutland Associate Osborne Clarke discuss termination payments and how they are taxed
The rules have been around for many years but a recent upsurge in enquiries suggests that HMRC is scrutinising more termination payments and increasingly challenging how they have been taxed. With the £30 000 exemption and National Insurance (NI) liabilities the most common areas challenged perhaps now is a good time to revisit this topic with a look at how termination payments are taxed and HMRC's current approach.
The basics
Termination payments are taxed in the following order:
● all payments (including benefits) that are 'earnings' from the...
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Philip Moss Partner and Tracey Rutland Associate Osborne Clarke discuss termination payments and how they are taxed
The rules have been around for many years but a recent upsurge in enquiries suggests that HMRC is scrutinising more termination payments and increasingly challenging how they have been taxed. With the £30 000 exemption and National Insurance (NI) liabilities the most common areas challenged perhaps now is a good time to revisit this topic with a look at how termination payments are taxed and HMRC's current approach.
The basics
Termination payments are taxed in the following order:
● all payments (including benefits) that are 'earnings' from the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
