Tax on payments and benefits in redundancy situations

As the number of organisations which have been impacted by the Covid-19 pandemic continues to rise, many will be looking to restructure their businesses with the inevitable consequence of employee redundancies. Care needs to be taken to understand the tax treatment of any payments or benefits which may be provided to impacted employees, in particular the potential impact of the ‘post-employment notice pay’ rules, pension planning arrangements and the attachment of conditionality to payments, to ensure the delivery of the greatest net value to employees and the lowest net cost to employers.