The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
income arising from relevant events held in a maximum period of 12 calendar months only, beginning with the date the first event is held in a ‘testimonial year’, even if that year straddles more than one tax year.
If the level of the income arising from the testimonial or testimonial year falls below the value of the exemption, the amount of the unused exemption will not be available to carry forward to a future sporting testimonial or benefit match for the sportsperson, or against any other testimonial events held after the end of that 12 month period.
Any non-contractual or non-customary testimonial events held on or after 6 April 2017 from a testimonial that is awarded or arranged for a sportsperson prior to 25 November 2015 will fall within existing arrangements.
For further details, go to GOV.UK .
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Simplification of the tax and National Insurance treatment of termination payments 11 August 2016
It was announced at Budget 2016 that legislation would be included in Finance Bill 2017 to tighten and clarify the rules on which types of payments will be treated as salary and which will be subject to the termination payment rules. A consultation on the draft legislation has now been published.
Geographical extent - This regulatory change will apply to all four nations of the UK.
The changes which are due to come into effect in April 2018 include:
clarifying the scope of the exemption for termination payments to prevent manipulation, by making the tax and National Insurance contributions (NICs) consequences of all post-employment payments consistent aligning the rules for income tax and employer NICs so that employer NICs will be payable on payments above £30,000 (which are currently only subject to income tax) removing foreign service relief clarifying that the exemption for injury does not apply in cases of injured feelings
The government has analysed the responses to its consultation on termination payments held in summer 2015 and has set out its response and consultation on draft legislation .
The draft legislation is intended to give effect to the changes and the government invites views on whether this objective is achieved. The closing date for responses is 5 October 2016.
CIPP comment The CIPP will be studying the draft regulations and will, as usual, seek member views where appropriate. Read the CIPP response to the Summer 2015 consultation .
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CWG2(2016) Employer Further Guide to PAYE and NICs 17 August 2016
Amendments have made to the CWG2 for payments relating to registered pension schemes where a person has flexibly-accessed their funds and Death Benefit payments relating to pension schemes.
The text amendments are detailed in Chapter 2, paragraphs 24A and 24B of the CWG2(2016) - Employer Further Guide to PAYE and NICs.
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The Chartered Institute of Payroll Professionals
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