Most people are aware of the 25% of the £30,000 tax exemption for payments made on the termination of an employment contract.
This exemption doesn’t apply in every case, but where it does the termination payment is also free of NIC without limit. From 6 April 2018, termination payments will only be tax- and NIC-free up to £30,000, and the rules that determine which payments are tax-free will be tightened up.
