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New HMRC process for termination payment queries


Published: 21 Feb 2024 Update History

HMRC’s latest Employer Bulletin states that termination payment enquiries should now be made through the non-statutory clearance service.
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In the latest issue of its Employer Bulletin, HMRC has set out its new approach to providing advance assurance on certain termination payment enquiries.   

HMRC’s guidance had included a commitment to give a binding answer to enquiries on termination cases involving, for example, the disability and injury compensation exception and the foreign service exception (EIM 12817). It also committed to explain how certain statements of practice and extra statutory concessions operated within the context of a termination case (EIM 12825).  

This guidance has now been removed. Going forward, an enquiry should be made through the non-statutory clearance service where there is a genuine point of uncertainty.  

Other points of interest in the bulletin include: 

  • confirmation that an update to the Basic PAYE Tools (BPT) will be released at the end of March to support the 2024/25 tax year;
  • advice on how to prepare for, and deal with end-of-year PAYE reporting; 
  • guidance on upcoming changes to paternity leave and pay; and 
  • helping your workers/contractors steer clear of avoidance schemes involving how they are paid. 


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