3 articles tagged with Termination Payment.
How settlement agreement payments are taxed in 2026 -- the £30,000 tax-free exemption, PENP formula for notice pay, payments in lieu of notice, and PILON tax rules.
A plain-English walkthrough of the Post-Employment Notice Pay (PENP) formula HMRC uses to tax PILON, why it exists, and how it interacts with the £30,000 tax-free termination payment threshold in 2026/27.
Money paid for signing a post-termination non-compete or restrictive covenant is taxed in full as earnings, with income tax and National Insurance both due — it never qualifies for the £30,000 termination payment exemption, however it's labelled.
