Tax on termination - employer NICs charges delayed
23 November 2017
Some good news for employers was confirmed in the Chancellor’s autumn Budget.
The introduction of employer national insurance contributions (NICs) on termination payments in excess of £30,000 is to be delayed by a year, and so will only apply to termination payments made on or after 6 April 2019. This will help employers keep the costs of settlement negotiations down for a further 12 months.
It is important to note, however, that other changes to the tax and NICs treatment of termination payments – discussed here - will still take effect from 6 April 2018. These include removing the current distinction between different types of payment in lieu of notice.
Lewis Silkin has published a commentary on the autumn Budget and full details are available here.