Termination award tax change from April 2020

Rules set to come into force in 2020 will align the income tax and national insurance contributions (NICs) on termination awards and sporting testimonials, closing a current loophole, which allows effective tax planning.

The National Insurance contributions (NICs) Bill introduces a simplification of the tax system reforming the current situation where termination awards and sporting testimonials are treated differently for income tax and NICs and was introduced into parliament on 25 April 2019.

Read more at the Accountancy Daily.