TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Employer’s NIC and termination payments changes

The government has confirmed that Class 1A employer’s national insurance contributions (NIC) which will be due on cash termination awards of more than £30,000 from 6 April 2020 will be payable during the relevant tax year. Employer’s NIC on non-cash elements of termination packages over £30,000, will be payable after the tax year-end.

This was confirmed by the Exchequer Secretary to the Treasury and HM Treasury/HMRC in their evidence to the Public Bill Committee’s scrutiny of the NIC (Termination Awards and Sporting Testimonials) Bill 2017–19, which is currently progressing through Parliament.

The Bill introduces a new Class 1A NIC charge on termination awards in excess of £30,000 and a new Class 1A NIC on sporting testimonial payments over £100,000.