John Chaplin, director of employment taxes at KPMG in the UK, said the firm
had seen a high number of businesses wanting to rush through the process given
the sensitive nature of redundancies.
‘I see it on a daily basis. They’re [employers] trying to get things done as
quickly and painlessly as possible,’ he said.
But the taxman is set to take a closer interest, Chaplin warned.
Businesses often assume the first £30,000 is tax and NIC free and treat
retention bonuses as non-taxable.
Chaplin said that while HMRC has traditionally been receptive to discussions
on termination payouts, the ongoing economic downturn will lead to a crackdown
in pursuing payments owed.
A HMRC spokesman said he was unable to comment on the issue.
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