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.

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