Changes to Termination Payments and National Insurance contributions
The current position is that non-contractual termination payments are exempt from National Insurance contributions. From April 2018, employers National Insurance will be payable on non-contractual termination payments over £30,000. This will bring the position regarding National Insurance in line with that of income tax.
Additional provisions aiming to tighten the £30,000 exemption have been mentioned although exactly what that entails has not been announced yet.