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Changes to employment tax laws

15 May 2018 / Chris Thomas , James Wood
Issue: 4647 / Categories: Comment & Analysis

Ring in the changes


  • The distinction between contractual and non-contractual payments in lieu of notice has been largely removed.
  • Foreign service relief on termination payments is no longer available.
  • Optional remunerations arrangements legislation introduced in April 2017 may affect employees for the first time this year.
  • HMRC is placing greater scrutiny on payroll taxes to ensure employers comply with the rules.

The start of the new tax year is often a hectic time for business with changes to employment tax laws taking effect – and 2018-19 is certainly no exception.

Important measures this year concern termination payments salary sacrifice and workplace pension contributions.


Termination payments

Three key changes to the tax treatment of payments made on termination of employment apply from 6 April 2018 and need to be considered by employers...

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