Termination Payments

Termination Payments

With legislative changes and new case law, how can you be sure that you are complying with the Law? An error could result in significant tax and / or NICs exposure for either, or both, the employee and employer.

What payments are due in which circumstances? How are they calculated? Are they liable to tax and NICs in full or only partially, or are they wholly exempt? How and when are tax and NICs calculated?

How does HM Revenue and Customs interpret contractual entitlement versus tax free payments? How do you calculate the net amount due under the 'Gourley principle'? What are the PAYE procedures that must be followed?

This course clarifies what the law is and how to correctly calculate those final payments and stay within the law.

Who Should Attend?

All Payroll and HR staff that are, or may be in the future, involved in the termination process of employees, ensuring that there is a full understanding in this sensitive area of processing.

Course Content

• The 'Gourley principle' - tax and NICs treatment
• Restrictive Covenants
• PILONs
• Redundancy
• Damages
• Breach of Contract
• Injury and Disability
• Compromise Agreements
• Holiday Pay
• Timing of Payments
• Benefits under a Retirement Benefit Scheme
• Loan Write-offs
• Benefits-in-Kind
• Exemptions
• Death
• Recording and Reporting Requirements

Course Aims

On completion delegates should be able to:

• Fully understand which type of termination payment is due and know the tax and NICs treatment applicable
  
• Accurately calculate the payment(s) due
  
• Be able to correctly record and report the various types of termination payments.