{"id":1324,"date":"2018-04-10T17:19:17","date_gmt":"2018-04-10T17:19:17","guid":{"rendered":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/?p=1324"},"modified":"2018-04-10T17:47:25","modified_gmt":"2018-04-10T17:47:25","slug":"termination-payments-new-liability-tax-national-insurance","status":"publish","type":"post","link":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/termination-payments-new-liability-tax-national-insurance\/","title":{"rendered":"Termination Payments – New Liability for Tax and National Insurance"},"content":{"rendered":"

The exemptions from paying tax on termination payments, especially pay in lieu of notice, have been reduced significantly as of 6th April 2018 and made more complex in some instances.<\/p>\n

\"photo
Tax Increases on Termination of Employment<\/figcaption><\/figure>\n

Take a quick quiz to see if you need to read more about the changes.<\/p>\n

    \n
  1. \n
    \u00a0Are non contractual payments in lieu of notice taxable?<\/h5>\n<\/li>\n
  2. \n
    \u00a0If an employee or an employer terminates employment before the end of the proper notice period, are any payments in lieu of that notice taxable?<\/h5>\n<\/li>\n
  3. \n
    \u00a0What is post employment notice pay?<\/h5>\n<\/li>\n
  4. \n
    \u00a0Is post employment notice pay taxable?<\/h5>\n<\/li>\n
  5. \n
    \u00a0Is basic pay only or all pay taxable if categorised as post employment notice pay?<\/h5>\n<\/li>\n<\/ol>\n

    How well did you do? \u00a0\u00a0 The answers are:<\/p>\n

    1\u00a0 Yes – taxable in most instances.<\/p>\n

    2\u00a0 Yes – the amount of pay that would have been received, if notice had been worked properly, is taxable.<\/p>\n

    3\u00a0 Read the article below to find out more.<\/p>\n

    4\u00a0 Yes – it is taxable.<\/p>\n

    5\u00a0 Basic pay only is taxable but any am0unt that is deducted under a salary sacrifice scheme is counted as basic pay.<\/p>\n

    Read more on this aspect of termination of employment so that you do not unwittingly increase your costs.\u00a0 You will also be more prepare to consider other options when making such decisions or outlining the liabilities to managers and staff in a termination situation.<\/p>\n

    Read our article on LinkedIn – ‘Termination Payments are Alive and Kicking<\/a>‘<\/p>\n

    You are welcome to share this article and\/or the article read via the link above but please read the note in the sidebar about acknowledging the source and our copyright.<\/p>\n

    Finally, do not miss our new posts and articles.\u00a0 Add your e-mail address below and you will receive an alert to new articles. We do not pass on your e-mail details to another organisation except for the service provider for alerting you to our new articles.<\/p>\n

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    \nWeb site:\u00a0     HR Management Dimensions<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    The exemptions from paying tax on termination payments, especially pay in lieu of notice, have been reduced significantly as of 6th April 2018 and made more complex in some instances. Take a quick quiz to see if you need to read more about the changes. \u00a0Are non contractual payments in lieu of notice taxable? \u00a0If […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wds_primary_category":0,"footnotes":""},"categories":[186,38],"tags":[187,188],"class_list":["post-1324","post","type-post","status-publish","format-standard","hentry","category-termination-of-employment","category-terms-of-employment","tag-tax-and-termination-payments","tag-tax-exemptions-upon-termination-of-employment"],"jetpack_featured_media_url":"","post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/wp-json\/wp\/v2\/posts\/1324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/wp-json\/wp\/v2\/comments?post=1324"}],"version-history":[{"count":0,"href":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/wp-json\/wp\/v2\/posts\/1324\/revisions"}],"wp:attachment":[{"href":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/wp-json\/wp\/v2\/media?parent=1324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/wp-json\/wp\/v2\/categories?post=1324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hr-management-dimensions.co.uk\/HRMDmn\/wp-json\/wp\/v2\/tags?post=1324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}