The government announced at Budget 2016 that it would be reforming the tax and NICs treatment of termination payments. Currently, certain forms of termination payments are exempt from employee and employer NICs and the first £30,000 is Income Tax free.
A tax information and impact note has also been published.
On 2 November 2017 the government announced that the introduction of the National Insurance Contributions Bill will be delayed.
The introduction of employer NICs on termination payments above £30,000 will now take effect from 6 April 2019 rather than 6 April 2018.