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Is the £30,000 termination payment “Allowance” next for the chop?

This article in the Telegraph suggests that the government may review the up to £30k tax free employers can currently pay to employees on the termination of their employment. The size of the £30k in real terms has already decreased over the years as a result of inflation and the £30k not being increased to keep up with inflation. The limit has been £30k for as long as I can remember.

Whether it will be removed or not isn’t clear, but it’s one of a number of employee benefits that could be changed following the Office for Tax Simplification review.

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One Response to Is the £30,000 termination payment “Allowance” next for the chop?

  1. John Airey says:

    I believe that this is being abused by some companies to give a bigger redundancy package than what is required by law. They probably save money on Employer’s NI contributions as a result. It’s still a tax fiddle though.

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