Taxation of termination payments

Resource type: Practice note

Status: Maintained

Jurisdiction: United Kingdom

An overview of the way in which payments made to employees on termination of their employment are taxed.

John Evason, Monica Kurnatowska, Jeremy Edwards and Michael Ingle, Baker & McKenzie

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Resource information

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Resource ID: 0-200-2422
Products: PLC UK Employment, PLC UK Pensions, PLC UK Public Sector, PLC UK Share Schemes & Incentives, PLC UK Tax
This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.

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Taxation: EmploymentTaxation: Employment (http://uk.practicallaw.com/4-200-0628)
Termination of EmploymentTermination of Employment (http://uk.practicallaw.com/1-103-1222)

Practice note: overview

Taxation of termination payments: a quick guide Taxation of termination payments: a quick guide (http://uk.practicallaw.com/topic6-382-8283)

Practice notes

Calculating pensions loss on termination of employment Calculating pensions loss on termination of employment (http://uk.practicallaw.com/topic0-209-0956)
Dismissing a senior executive Dismissing a senior executive (http://uk.practicallaw.com/topic2-200-2162)
Employee share schemes: dealing with leavers Employee share schemes: dealing with leavers (http://uk.practicallaw.com/topic5-207-3959)
Golden parachutes Golden parachutes (http://uk.practicallaw.com/topic6-201-6322)
Tax issues on the relocation of employees Tax issues on the relocation of employees (http://uk.practicallaw.com/topic9-200-6982)
Tax treatment of damages Tax treatment of damages (http://uk.practicallaw.com/topic3-205-5372)
Taxation of employees Taxation of employees (http://uk.practicallaw.com/topic6-200-2122)
Unfair dismissal: compensation and remedies Unfair dismissal: compensation and remedies (http://uk.practicallaw.com/topic5-386-1008)

Standard clause

Payment in lieu of notice clause Payment in lieu of notice clause (http://uk.practicallaw.com/topic3-200-2114)

Checklist

Taxation of termination payments: checklist Taxation of termination payments: checklist (http://uk.practicallaw.com/topic8-383-6324)

Legal update: archive

Ask the team: PAYE treatment of post-P45 share plan gains and bonuses Ask the team: PAYE treatment of post-P45 share plan gains and bonuses (http://uk.practicallaw.com/topic0-505-2951)
Ask the Team: what is the tax treatment of a redundancy payment if the employee is retiring? Ask the Team: what is the tax treatment of a redundancy payment if the employee is retiring? (http://uk.practicallaw.com/topic7-386-3624)
Ask the team: when will a non-contractual PILON be taxable as employment income? Ask the team: when will a non-contractual PILON be taxable as employment income? (http://uk.practicallaw.com/topic7-500-8441)
Termination payment was a contractual payment in lieu of notice Termination payment was a contractual payment in lieu of notice (http://uk.practicallaw.com/topic2-386-8068)

Legal update: case report

Compensation payment was not connected with termination of employment Compensation payment was not connected with termination of employment (http://uk.practicallaw.com/topic5-386-1211)

External resources

HM Revenue & Customs Employer's Further Guide to PAYE and NICs HM Revenue & Customs Employer's Further Guide to PAYE and NICs (http://uk.practicallaw.com/topic4-203-5213)
HM Revenue & Customs Employment Income Manual HM Revenue & Customs Employment Income Manual (http://uk.practicallaw.com/topic8-203-5211)
HM Revenue and Customs HM Revenue and Customs (http://uk.practicallaw.com/topic6-200-2853)

Book

National Insurance Contributions 2011/12 National Insurance Contributions 2011/12 (http://uk.practicallaw.com/topicB-000-1241)

Taxation of termination payments

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