Redundancy taxes


The revised Finance Bill which was progressing through Parliament as Labour Research went to press, introduces changes to income tax on termination payments.

Most significantly, the government is to make tax and Class 1 National Insurance Contributions payable on basic pay that would have been earned had an employee worked out the full notice period, even where there is no contractual right to payment in lieu of notice.

https://www.gov.uk/government/publications/income-tax-and-national-insurance-contributions-treatment-of-termination-payments/income-tax-and-national-insurance-contributions-treatment-of-termination-payments