Coronavirus and pay
In this guide on coronavirus and pay topics covered include statutory sick pay, dependency leave, reductions in pay, lay-offs and redundancy.
Month: March 2020
In this guide on coronavirus and pay topics covered include statutory sick pay, dependency leave, reductions in pay, lay-offs and redundancy.
It is a common misunderstanding that all termination payments qualify for a £30,000 tax exemption. The exemption only applies if the payment is not otherwise chargeable to income tax.
Generally, contractual payments will be subject to income tax and national insurance contributions (NICs).
Other payments relating to the termination of employment may only be liable to tax on the amounts exceeding £30,000 and may be completely exempt from NICs.
This general distinction is not very helpful though because there are a number of exceptions. (more…)