HM Revenue & Customs has announced that the changes to the national insurance (NIC) treatment of termination payments and sporting testimonials have been delayed to 6 April 2020.
From 6 April 2020 Employer class 1A NIC will become payable on termination payments in excess of £30,000 and on sporting testimonials that exceed £100,000 (lifetime limit).
The changes are intended to align the NIC treatment with the treatment for income tax although there is no NIC liability for the employee on such payments.
Whether or not the £30,000 exemption applies on termination of employment is a complex area and specialist advice should be obtained.
Our diverse team of tax professionals are committed to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to lawfully exploit tax savings is made known to you, restructuring your affairs in a tax effective and efficient way.
For more information, please contact your usual Beavis Morgan Partner.