EIM13860 - Termination payments and benefits: National Insurance Contributions
From April 2020, termination awards charged to income tax under s403 ITEPA 2003 are also subject to Class 1A employer National Insurance Contributions (NIC) on the amount in excess of £30,000.
Class 1A NIC is payable where the termination award is paid after 5 April 2020 and the employment was terminated after 5 April 2020.
If an employment was terminated before 6 April 2020 and the termination award is paid after 5 April 2020 there will be no Class 1A NICs payable.
More information can be found within the National
Insurance Manual at NIM13132 and NIM13200.