CIPP UK: Termination payments
Termination payments are a complicated area of payroll with numerous (and sometimes) interchangeable terms describing different kinds of payments which attract a variety of tax and NIC liabilities. The payroll department is usually called upon to navigate through this labyrinth.
From detailing the variety of common payments which form part of a termination package, this course examines their correct tax/NIC treatments and their correct application in a variety of circumstances, from redundancies to contractual breaches, retirement and death in-service.
Who is this course for?
The course is suitable for delegates that have the following suggested roles:
What will you achieve?
To equip you with an understanding of the various types of termination payments and their correct tax/NIC treatments to enable them to ensure their organisations administer such payments correctly.
Identify which type of termination payment is due and know the tax and NICs treatment applicable
Accurately calculate the payments due
Be able to correctly record and report the various types of termination payments.
Before joining the CIPP as a full-time trainer in September 2019, Fiona worked in payroll in different organisations for over 9 years including her role as Assistant Group Payroll Manager for Breedon Group Services, the UK’s largest independent construction materials firm. Fiona holds the CIPP Foundation Degree in Payroll Management and the CIPD Diploma in HR Management and uses the knowledge gained in both of these within her training role to ensure that CIPP members have the information, skills and knowledge they need to keep up to date with the ever-changing payroll obligations.
- Identifying the effective date of termination
- Summarising the factors determined by the contract of employment
- Explaining the correct treatment of benefits in kind as part of termination packages
- Identifying taxable & NICable components of termination payments
- Identifying tax and NIC exempt components of termination payments
- Applying the £30,000 exemption threshold correctly
- Defining Restrictive Covenants
- Distinguishing between contractual & noncontractual Payments In Lieu Of Notice (PILONs)
- Distinguishing between statutory and contractual redundancy payments
- Defining ex gratia payments
- Identifying situations where PENP calculations are required
- Calculating PENP
- Outlining the rules for contributing to UK and overseas pension schemes
- Summarising the rules for awarding termination payments associated with death in service
What will be covered?
Outlining the contractual implications of termination payments:
Outlining the tax and NIC treatment of termination payments:
Identifying the components of a Termination Payment:
Administer Post Employment Notice Payments (PENP):
Outlining correct practices for termination payments for death in service and retirement incidences:
This course will cover common termination payments, their calculation, tax and NICs treatment and changes in the treatment of payments from April 2018.