Termination Payments Training

Important changes were made to the tax and National Insurance treatment of certain termination payments which came into effect on 6 April 2018 and again on 6 April 2020. Of particular importance were the changes to the rules concerning Payments in Lieu of Notice (PILONs) – now known as Post-Employment Notice Pay (PENP) – which require such payments to be subject to tax/NIC in full regardless of whether or not they arise from a contractual entitlement. Whilst the concept behind the rules appears to be straightforward, the details on how the new rules should be applied in practice certainly appear to be anything but that and it is an area that continues to challenge our clients.

The objectives of the course will be to provide clarity on the rules in addition to answering questions such as:

• What exactly is Post Employment Notice Pay (PENP) and how is it calculated?
• Redundancy and other payments on termination – can they still be paid free of tax/NIC?
• What are the rules if an employment is terminated when an employee is on long-terms sick leave?
• What if someone leaves by mutual consent with no pay off – do the rules still apply?
• What are the latest developments regarding Tribunal awards, payments for hurt feelings, discrimination etc?
• The course will set out the legislative changes and supporting guidance and will use a number of case studies to cover different scenarios that could arise and where the rules would apply.

The course will also cover the important changes to the rules on termination payments from April 2020 with the introduction of an employer’s NIC charge on payments over £30,000. Of particular importance is how they interact with the PENP rules.

We recommend this training course to all clients and contacts and particularly for staff in HR/Payroll, Legal and Tax that are responsible for formulating, agreeing and administering termination settlements and redundancy payments within the organisation.

The training sessions will start at 10.00 , finishing no later than 1.00pm

The cost of the training courses is £195. There is a 10% discount for bookings of three or more places.

Register for Termination Payments Training here