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The simplification of the tax and NIC treatment of termination payments is currently under consideration following an HMRC consultation document Simplification of the tax and National Insurance treatment of termination payments published on 24 July. It comes in response to the Office of Tax Simplification’s Review of employee benefits and expenses: final report published last July 2014.
Views are now sought on:
The simplification of the tax and NIC treatment of termination payments is currently under consideration following an HMRC consultation document Simplification of the tax and National Insurance treatment of termination payments published on 24 July. It comes in response to the Office of Tax Simplification’s Review of employee benefits and expenses: final report published last July 2014.
Views are now sought on:
- removing the distinction between contractual and non-contractual termination payments and whether this will make it easier for employers and employees to understand;
- the design of a new exemption from income tax and National Insurance;
- whether the income tax and National Insurance treatment of termination payments should be aligned; and
- which of the existing exemptions that remove the liability to income tax should be retained and whether any new ones should be introduced.
Comments should be emailed to employmentincome.policy@hmrc.gsi.gov.uk by 16 October 2015.
