Tax

UK Budget 2018: Employment

The Chancellor has delivered the 2018 UK Budget. Whilst the number of employment tax related announcements were limited there were some significant changes proposed, most notably in relation to off-payroll working arrangements in the private sector. Set out below is a summary of the key announcements.   Off-Payroll Working in the Private Sector As widely anticipated following its consultation earlier this year, the Government has announced that it will be reforming the off-payroll working rules …

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April 2018 tax reforms will impact on employers making termination payments

Employers who are planning to make termination payments to departing employees on or after 6 April 2018 need to be aware of important reforms which will take effect on 6 April 2018. The key point for employers to note is that the value of all notice periods not worked will become taxable and subject to both employer and employee National Insurance Contributions (NICs), regardless of whether there is a contractual payment in lieu of notice …

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Termination payments – changes to the tax treatment

Following its consultation in 2015, the Government has now confirmed the changes which will be made in how termination payments will be taxed, and published draft legislation for comment. The changes will apply “from April 2018”. It is not clear at this stage whether payments pursuant to settlement agreements entered into before that time will be grandfathered under the existing legislation, but that may well be the case. Key points are: the existing £30,000 income …

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