Treatment of Termination Payments
At BDO Northern Ireland we recognise the decision made by employers to terminate an employees’ contract is stressful. The task at hand is striking the right balance of payments for both the business and the employee.
In the right circumstances, up to £30,000 termination payment can be exempt from income tax and NIC. It is important to note that new rules are to be introduced from April 2017 which will significantly change the tax position of termination payments and advice should be taken before any payments are made.
BDO Northern Ireland can help to structure any termination payments in an efficient manner helping to minimise the tax cost.