EIM13855 - Termination payments and benefits: reports by employers of payments and benefits within Section 401 ITEPA 2003: settlements made on or after 6 April 1998: subsequent reports
Regulation 92 Income Tax (Pay As You Earn) Regulations 2003 (SI2003/2682)
In two circumstances the ex-employer may need to make a report despite having initially decided that the settlement is wholly cash or its value is not more than £30,000.
»Ê¹ÚÌåÓýappse are:
- where there is a change in a settlement so that it now contains non-cash benefits and exceeds £30,000 and
- where a settlement of cash and non-cash benefits that was originally under £30,000 is changed to bring the total value over £30,000.
»Ê¹ÚÌåÓýapp ex-employer must then make a report to HMRC (copied to the ex-employee) within 92 days of the end of the year in which the change occurred. »Ê¹ÚÌåÓýapp report must specify the same information as listed in EIM13850.
In addition, in some circumstances the ex-employer may need to make a further report. This happens where there is a material change in the amount of the payments awarded or in the nature and amount of other benefits. »Ê¹ÚÌåÓýapp ex-employer must notify HMRC of details of the material change within 92 days of the end of the tax year in which the change occurred. »Ê¹ÚÌåÓýapp Tax Bulletin article in October 1998 on termination payments said that such a report would be looked for where there was an increase in value of more than £10,000.