Termination payments and benefits: reports by employers of payments and benefits within Section 401 ITEPA 2003: settlements made on or after 6 April 1998: subsequent reports
Regulation 92 Income Tax (Pay As You Earn) Regulations 2003 (SI2003/2682)
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.
- where there is a change in a cash package so that it now contains non-cash benefits and exceeds £30,000 and
- where a settlement of cash and non-cash benefits that was originally under £30,000 is changed to bring the total value over £30,000.
The ex-employer must then make a report to HMRC (copied to the ex-employee) within 92 days of the end of the year in which the change occurred. The report must specify the same information as listed in EIM13850.
In addition, in some circumstances the ex-employer may need to make a further report. This happens where there is a material change in the amount of the payments awarded or in the nature and amount of other benefits. The ex-employer must notify HMRC of details of the material change within 92 days of the end of the tax year in which the change occurred. The Tax Bulletin article in October 1998 on termination payments said that such a report would be looked for where there was an increase in value of more than £10,000.