Tax Treatment of Termination Payments: Changes From 6 April 2018

    View Author January 2018

    The UK government is changing the tax treatment of termination payments. This means it is going to get more expensive for those employers who are not currently taxing payments in lieu of notice (PILONs) and/or who make high-value compensation payments (i.e. on top of any PILON). Any employer negotiating an exit should consider the impact these changes will have on any termination payments that will be made on or after 6 April 2018.