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HMRC internal manual

Employment Income Manual

Termination payments and benefits: reports by employers of payments and benefits within Section 401 ITEPA 2003: settlements made on or after 6 April 1998: contents of report

Regulation 91 Income Tax (Pay As You Earn) Regulations 2003 (SI2003/2682)

The report must specify:

  • the estimated total amount of the payments and the cash equivalents (see EIM13270) of other benefits awarded, including payments and other benefits available in future years
  • details of the payments made and the cash equivalents (see EIM13270) of non-cash benefits provided in the year of settlement (other than any already included in a P11D)
  • an estimate of the total amount of the payments to be made in years subsequent to the year in which the settlement was made
  • the total number of years in which payments and benefits are to be provided
  • details of the circumstances if the time over which the payments or other benefits are made or provided can be reduced. For example, a beneficial loan may continue only until an ex-employee finds new employment.
  • the terms under which benefits are to be provided in the year(s) following the settlement year, together with a description of each.

In two circumstances the ex-employer may need to make a report despite having initially decided that the settlement is wholly cash or its value is not more than £30,000, see EIM13855 for details.