Payments made on the termination of employment are within the scope of the PAYE regulations1, irrespective of whether the payment is taxed as earnings or as a termination payment that is taxable under ITEPA 2003, s 401 in excess of the £30,000 threshold. However, the exact procedure that applies depends on the date on which the payment is made.
If the payment is made before the employment has ended, and before the employer has prepared the P45, PAYE is operated in the normal way on the amount of the payment and the usual cumulative
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Web page updated on 17 Mar 2025 16:34