Employer's NICs now deducted on termination payments above £30,000

Currently, only income tax is deducted on termination payments over £30,000.

From the 6 April 2020, employers’ class 1A NICs charge (but not employee NICs) are now to be deducted to the amount of the payment exceeding £30,000. It will apply to termination payments received on or after the 6 April 2020, except:

1. Where employment was terminated before that date, or

2. Where payments are received in instalments and the first instalment was received before that date.