What is the PAYE system?
If an employer pays an employee in lieu of notice, is the payment taxable?
What are the duties of the employer under the PAYE system?
What are the duties of the employer regarding leavers and new employees under the PAYE system?
Under the PAYE system what are an employer's duties at the end of the tax year?
What changes are being made to PAYE reporting by the provisions on real time information?
When do employers have to start operating real time information for their PAYE reporting?
Do all employers have to use real time information for their PAYE reporting?
Are "golden hello" payments taxable?
Whether or not a payment in lieu of notice is taxable depends on the terms of the employee’s contract. If the contract of employment contains an express clause allowing the employer to pay the employee in lieu of notice, the payment will represent wages and will, therefore, be subject to tax and national insurance contributions. If the contract of employment does not contain an express payment in lieu of notice clause, but the employer's custom and practice is always to pay in lieu, such a term may be implied into the contract of employment and any resulting payment in lieu may be taxable. However, if there is no payment in lieu of notice contract clause, and there is no risk of there being one implied, the payment will be regarded as compensation for a breach of contract (the failure to give the employee his or her contractual notice) and the first £30,000 will be tax free.
Where a payment is regarded as compensation, the question arises of whether the employer should pay the net or gross sum to the employee. Strictly speaking the employer is obliged to pay the employee only the net amount to represent the amount that he or she would have received but for the breach of contract by the employer.
However, many employers will make a gross payment to the employee as a gesture of goodwill. After all, if the employer had dismissed the employee without breaching the contract, the employer would be out of pocket to the same extent; it would, however, have paid the tax to HM Revenue & Customs.
Can deductions be made from an employee's wages net of tax?
Where an employer wishes to pay employees a 'loyalty bonus' when it relocates office, will the payments be subject to tax and national insurance?
Does an employer have to complete a P45 for an employee who is leaving?
Where an employee has accidentally been overpaid, can the employer withhold the employee's P45 until he or she repays the amount in question?
At which rate of tax is any redundancy payment above £30,000 taxed?
Do employers have to account for VAT in relation to vouchers and other goods and services provided to employees under salary-sacrifice arrangements?
When did the changes in relation to the VAT treatment of taxable benefits under salary-sacrifice arrangements come into force?
Do employers have to account for VAT in relation to childcare vouchers provided to employees under salary-sacrifice arrangements?
How does the decision in the AstraZeneca case affect the income tax treatment of benefits to employees under salary-sacrifice arrangements?
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