HMRC consultation on the simplification of tax and NIC treatment of termination payments: our response
In July, HMRC published a consultation paper outlining proposed changes to the tax and National Insurance Contributions (NIC) treatment of termination payments.
Under the current legislation, calculating the appropriate income tax and NIC on termination payments can be complicated, leading employees and employers alike to be unsure about their liabilities. The intention of the consultation is to determine reforms to the legislation to significantly reduce this complexity.
Examples of the reforms include aligning the income tax and NIC treatment of payments, and reducing the £30,000 tax-free exemption threshold for ‘ex gratia’ payments.
We will be submitting our response to HMRC and would greatly value any input from those who have been affected by these issues. If you would like to participate, please respond to our short nine question survey by 9 October.
Alternatively, if you would like to speak with a member of our team, please feel free to contact Liz Hunter directly on email@example.com or 020 7063 4489.