Prior to 6 April 2020, no liability arose in respect of redundancy payments (without limit and whether statutory or otherwise) or other termination payments made purely in compensation for loss of employment, because they are not ‘from’ the employment and were therefore not regarded as earnings.

From 6 April 2020, treatment of termination payments for NICs has been aligned with the tax treatment and payments made on or after that date are subject to Class 1A (employer-only) rather than Class 1 NICs, but only to the extent that they exceed £30,000 (see ¶12723).

Before a payment is officially accepted as a redundancy payment, the following conditions must be met:

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.