Search news archive

 

 

t: 023 80 254 900

f: 023 80 254 906 

e: info@dtlimited.co.uk--------------91 Lakewood Road, Chandlers Ford, Eastleigh, SO53 5AD

NICs and termination payments

Source: HM Government | | 30/04/2019

The National Insurance Contributions (NICs) Bill was introduced into Parliament on 25 April 2019. The Bill will see the introduction of a new 13.8% Employer Class 1A NIC charge on termination payments and sporting testimonials that are already liable to Income Tax from 6 April 2020. The government announced this change at Budget 2018.

This means that from next April, termination payments over £30,000 and sporting testimonials of more than the £100,000 limit will be subject to Employer Class 1A NIC charge. These changes will ensure that termination awards and sporting testimonials have the same Income Tax and NIC treatment. It will also close a commonly used loophole where employers disguise final payments as compensatory termination payments that benefit from the current NIC exemption.

The government had previously confirmed that the £30,000 tax free exemption on termination payments would be retained but that certain payments will no longer fall within the allowance. It is expected that any employer NIC ue on these termination payments will be collected in 'real-time', as part of the employer’s standard weekly or monthly payroll returns and remittances to HMRC.



 

Latest News

On your e-bike
11/06/2019 - More...
The Cycling Minister, Michael Ellis, has announced a number of changes to the Cycle to Work scheme in an announcement that was timed to coincide with Bike week. Bike week is an

HMRC cancels penalties charged to 6,000 families
11/06/2019 - More...
The High Income Child Benefit Charge (HICBC) was introduced in January 2013 and applies a charge to taxpayers whose income exceeds £50,000 in a tax year and who are in

HMRC blocks phone fraudsters
11/06/2019 - More...
Fraudsters have been blocked from using HMRC’s most used helpline numbers after the introduction of new defensive controls. These fraudsters had been able to make calls to

Free television licences scrapped for over-75s
11/06/2019 - More...
The TV licence fee has not been payable by those aged 75 or over since 2001. During 2015, the government reached an agreement with the BBC as part of the last charter renewal that

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

Copyright © 2019 - David Tilsley Limited
Cookie Policy |  Privacy Notice
Home     About us   Contact us