Patrick Ford (Squire Patton Boggs) reports on the termination payments and salary sacrifice arrangements provisions.
This article considers the draft Finance Bill 2017 provisions on two aspects of employment taxes: termination payments and salary sacrifice arrangements.
Termination payments
The draft legislation is as expected in respect of confirming that from 6 April 2018:
termination payments over £30 000 which are subject to income tax will also be subject to employer’s NICs;
all contractual and non-contractual payments in lieu of notice (PILONs) will be fully taxable and NICable; and
foreign service relief will be removed for employees who have spent time working outside the UK.
The initial draft legislation provided that the taxable non-contractual PILON amount would include all compensation for benefits and...
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Patrick Ford (Squire Patton Boggs) reports on the termination payments and salary sacrifice arrangements provisions.
This article considers the draft Finance Bill 2017 provisions on two aspects of employment taxes: termination payments and salary sacrifice arrangements.
Termination payments
The draft legislation is as expected in respect of confirming that from 6 April 2018:
termination payments over £30 000 which are subject to income tax will also be subject to employer’s NICs;
all contractual and non-contractual payments in lieu of notice (PILONs) will be fully taxable and NICable; and
foreign service relief will be removed for employees who have spent time working outside the UK.
The initial draft legislation provided that the taxable non-contractual PILON amount would include all compensation for benefits and...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
