Draft National Insurance Contributions Bill 2017: Termination awards
LITRG welcomes the fact that employees, already in a vulnerable position due to losing their job, will continue not to have an NIC liability on their termination payment. We continue to have a concern that employers may reduce termination packages to compensate for the additional cost of paying employer’s NIC on termination payments in excess of £30,000. We also request confirmation that the provisions will not result in termination payments (that are eligible for the £30,000 exemption) falling within the income calculation for student loan repayments.
We have also submitted a response to the consultation on the draft clauses of Finance Bill 2017 in relation to termination payments. These responses should be read in conjunction with one another.
The LITRG submission can be found here:
Joanne Walker