TAXATION OF TERMINATION PAYMENTS
Taxation latest: [private]The bad news is that, following an earlier consultation, the government has decided to subject all payments in lieu of notice (PILON payments) to income tax and employee National Insurance contributions – even those payments that currently would escape such treatment. The good news is that it has decided to leave the first £30k of termination payments free of income tax, and all termination payments (even those above £30k) free of employee National Insurance contributions. Further details can be found at https://www.gov.uk/government/consultations/simplification-of-the-tax-and-national-insurance-treatment-of-termination-payments-consultation-on-draft-legislation [/private]