Policy paper

Income Tax and National Insurance contributions: treatment of termination payments

This tax information and impact note aligns the rules for tax and employer National Insurance contributions by making employer NICs payable on termination payments above £30,000.

Documents

Details

The measure aligns the rules for tax and employer National Insurance contributions (NICs) by making employer NICs payable on termination payments above £30,000.

Update

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.

Published 5 December 2016
Last updated 4 April 2018 + show all updates
  1. The 'Proposed revisions' section has been updated about statutory redundancy payments.
  2. Updated to mention the introduction of employer NICs on termination payments above £30,000 will now take effect from 6 April 2019.
  3. First published.