Commentary

A4.147 Payments on termination of employment

Administration and compliance

A4.147 Payments on termination of employment

A4.147 Payments on termination of employment

A charge is imposed1 on payments and benefits exceeding £30,000 on:

  1.  

    (a)     the termination of an employment

  2.  

    (b)     a change in the duties of an employment; or

  3.  

    (c)     a change in the earnings from an employment,

so far as such payments and benefits are not otherwise taxable. For detailed narrative, see Division E4.8.

An employer or former employer is required before 7 July following the end of the tax year to provide HMRC with the following particulars of any award falling within those provisions2:

  1.  

    (i)     the total amount of the award

  2.  

    (ii)     the amount paid in

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