Employee care is always a vital consideration when a redundancy or termination of payment is carried out. As well as employment laws, there are also crucial tax implications to be aware of – this is an area we strongly recommend seeking professional advice in.

New rules for taxation of termination payments have recently been introduced to prevent manipulation to the system.

 The change applies to payments, or benefits received on, or after, 6 April 2018 in circumstances where the employment also ended on, or after, 6 April 2018. This follows an announcement at Budget 2016 that the government would introduce rules to prevent employers from manipulating the system.

Further changes are also expected to come into force in 2019.

If you’d like some advice, or to find out more, please get in touch today!

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