Termination payments
From 6 April 2018 onwards, all payments
made in lieu of notice will be subject to income tax and NIC. At
the moment, the first £30,000 of a termination payment where
there is no contractual right to make such a
payment, is exempt from tax and NIC deductions. If an employee is
not required to work their full notice (for whatever reason) HMRC
will assume that an element of any termination payment includes
notice pay and will classify it as 'post-employment notice
pay' and treat it as earnings subject to tax and NIC
deductions.
Employment Tribunal compensation
Compensation limits for some tribunal awards will increase from
6 April 2018:
- The compensatory award for unfair
dismissal increases to £83,682 from £80,541 (or a
year's pay, whichever is lower)
