Tax on termination - employer NICs charges delayed

The introduction of employer national insurance contributions (NICs) on termination payments in excess of £30,000 is to be delayed by a year, and so will only apply to termination payments made on or after 6 April 2019. This will help employers keep the costs of settlement negotiations down for a further 12 months. 

It is important to note, however, that other changes to the tax and NICs treatment of termination payments – discussed here - will still take effect from 6 April 2018. These include removing the current distinction between different types of payment in lieu of notice.

Lewis Silkin has published a commentary on the autumn Budget and full details are available here.