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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Termination payments and benefits: Section 401 ITEPA 2003: £30,000 threshold: payments and benefits received on or after 6 April 1998

Section 404(5) ITEPA 2003For payments and benefits received on or after 6 April 1998, the rule is that the £30,000 threshold is applied in the following order:

  • first, against cash benefits as they are received in the year and
  • second, against the aggregate of non-cash benefits at the end of the year (this can be relevant to an employer considering whether the PAYE Regulations apply to a payment).See example

EIM13955.

If a payment or benefit is received (see EIM13110) before 6 April 1998, SE13510 explains how to work out how the £30,000 is set off.