Employee Tax | Recent Developments

HMRC announced in the February 2024 issue of the Employer Bulletin that itis aligning its approach to providing advance assurance on certain termination payment enquiries.

Previously, HMRC's guidance committed it to giving a binding answer if an employer or agent made enquiries on certain termination cases, including those involving the disability and injury compensation exception, the foreign service exception, how the £30,000 threshold exemption applies to payments and non-cash provisions.

HMRC has announced that it will no longer give a binding answer on these cases outside the normal non-statutory clearance process.

This change means that such queries can only now be raised under HMRC's non-statutory clearance process, which requires there to be a genuine point of uncertainty on the correct treatment.