23. TERMINATION PAYMENTS

Question 1

when termination payment NIC contributions borne by employee and employer

Answer 1

employee if contractual
employer if ex gratia (payment for loss of office)

Question 2

is termination payment taxable if contractual

Answer 2

yes

Question 3

is termination payment taxable if expected

Answer 3

yes

Question 4

is termination payment taxable if reward for services performed

Answer 4

yes

Question 5

is termination payment taxable if on death or injury

Answer 5

no, never. if injury then never pay NIC

Question 6

is termination payment taxable if paid into registereed pension scheme

Answer 6

no

Question 7

is termination payment taxable if ex gratia

Answer 7

employer pays -> nothing if less than 30k. excess taxable otherwise

Question 8

how to treat termination payment if included in there is base salary for notice period

Answer 8

the base salary is taxable as usual. remainder subject to 30k rule

Question 9

are retraining courses taxable for NIC

Answer 9

no

Question 10

are legal costs taxable for NIC where they relate to disputes over termination

Answer 10

no

Question 11

is outplacement counselling taxable

Answer 11

no not taxable