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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.


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