March 26th, 2020 / Insight posted in MKS News

Increases in Employer’s National Insurance on redundancy payments endanger senior staff

“Businesses trying to reduce costs while the country is in lockdown, will know that redundancy payments above the tax-free amount of £30,000 per person will face 13.8% National Insurance from 6 April 2020,” says Tim Stovold, head of tax at Moore Kingston Smith. “This levy on employers is an incentive to cut their senior and long serving employees before 6 April 2020. This is the last thing government should be encouraging employers to do; a further deferment of this measure is urgently needed.”