Taxation of termination and redundancy Payments

Workshop Aims

Probably one of the most contentious areas employers have to contend with is the calculation of termination packages and determining whether the payments should be subject to tax and/or National Insurance. This intensive practical workshop explores all of the differing types of payments including statutory entitlements thereby enabling delegates to make payments that are compliant with employment, tax and NI legislation.

Who would benefit?

Anyone in payroll, HR or management who is making employees redundant or dismissing employees and wants to avoid costly penalties from HMRC because of incorrect tax and NI treatment of termination payments.

Course Content

The programme includes:

• The different types of payments
  
• Calculating entitlement to Redundancy payments
  
• Determining the tax & NI status of each element of the package including:
  
  • Occupational & Statutory redundancy pay
    
  • Compromise Agreements
    
  • Pay In Lieu of Notice
    
  • Pension contributions
    
  • Damages for breach of contract
    
  • Tribunal awards
    
  • Restrictive covenants
    
  • Benefits provided after leaving
    
  • Ex-Gratis payments
    
  • Payments made on retirement, death or injury
    
• Reporting Termination payments
• Calculating the tax and NI liability

At the end of the workshop, delegates will be:

• Appreciate the importance of identifying the tax and NI liability of payments correctly
• Be confident of their ability to put the principles they have learned into practice.

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