The rules are about to change over terminations following the introduction of The National Insurance Contributions (NICs) Bill in April.
The Bill will see the introduction of a new 13.8% Employer Class 1A NIC charge on termination payments and sporting testimonials that are already liable to Income Tax from 6 April 2020.
What does this mean for you?
From next April, termination payments over £30,000 and sporting testimonials of more than the £100,000 limit will be subject to Employer Class 1A NIC charge, ensuring that businesses can no longer hide final payments behind compensatory termination payments that benefit from the NIC exemption.
Need to know more? Get in touch.