Termination Payments and Exit Cap

March 20, 2019
Half Day

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Training Terms & Conditions:

Bookings and payment
All bookings are provisional until they have been confirmed in writing by ourselves. Confirmation will be dispatched within 7 days of the receipt of a completed booking form.   Authorities booking 3 or more places will be entitled to a 10% discount.


Invoices must be paid in full by no later than:

28 days following their date of issue.

Cancellations – Residential Course

More than 21 days : no payment due

21-8 days : 50% of course fee

7 days or less : full fee

Substitutions are permitted at any time

Cancellations – Single Day Courses

More than 15 working days : no payment due

14-7 working days : £100.00 cancellation charge

6 working days or less : full fee

Substitutions are permitted at any time

Training Materials

Training materials provided by us during the course are for the sole benefit of the course participant. They must not be photocopied, scanned, faxed or otherwise distributed without our prior written permission. All intellectual rights remain the property of LAVAT Consulting Limited.

Limitation of Liability

In the unlikely event of a course not taking place as scheduled, and for whatever reason, the financial liability of LAVAT Consulting Limited  to each participant shall be limited to the value of monies paid by that participant for attendance on the course.

Termination Payments and Exit Payments Cap

Important changes were made to the tax and National Insurance treatment of certain termination payments which came into effect on 6 April 2018. Of particular importance are the changes to the rules concerning Payments in Lieu of Notice (PILONs) which now require such payments to be subject to tax/NIC in full regardless of whether or not they arise from a contractual entitlement. Whilst the concept behind the new rules appears to be straightforward, the details on how the new rules should be applied in practice certainly appear to be anything but that. HMRC has updated its Employment Income Manual with several additional pages on the changes which illustrate their complexity. The new rules have  introduced the concept of ‘Post Employment Notice Pay’ (PENP), which is a notional calculation based on a specific formula to determine the amount subject to tax/NIC and understanding this calculation is crucial in applying the new rules.

This is an area where we continue to receive a large number of queries, so we are pleased to offer a course on these important rule changes. The objectives of the course will be to provide clarity on the new rules in addition to answering questions such as:

  • What exactly is Post Employment Notice Pay (PENP) and how is it calculated?
  • Can the new rules be avoided by labelling a termination payment in a different way?
  • Redundancy and other payments on termination – can they still be paid free of tax/NIC?
  • What are the rules if an employment is terminated when an employee is on long-terms sick leave?
  • What if someone leaves by mutual consent with no pay off – do the rules still apply?

The course will set out the legislative changes and supporting guidance and will use a number of case studies to cover different scenarios that could arise and where the new rules would apply. The course will also cover certain other changes from April 2018 regarding injury and disability payments, as well as an overview of the closer alignment of the tax/NIC rules that come into effect from 6 April 2020.

Additionally, the Government has recently announced a consultation on implementing an exit payment cap of £95,000 in respect of termination payments in the public sector. This is an important change to the rules that will have a significant impact on many public bodies. These rules are set to come into effect in 2019/20, so the course will consider the details of the rules and which payments must be taken into account in calculating the cap.

We recommend this training course to all PSTAX clients and contacts and particularly for staff in HR/Payroll, Legal and Tax that are responsible for formulating, agreeing and administering termination settlements and redundancy payments within the organisation.

Cumbria Constabulary, Penrith, CA10 2AU – 26 March 2020 (pm)

The afternoon training sessions will start at 12.45 for lunch with the course starting at 13.30 and ending around 16.30.

The cost of each half day course is offered for the special price of £165 plus VAT per delegate including the cost of lunch and refreshments.  PLEASE NOTE this is for the Cumbria Police date only.

You can book by sending an email to bookings@pstax.co.uk. 

Please note that bookings must be made at least a week before the training course you would like to attend. 

If you have dietary requirements or you book and subsequently find that you cannot attend, please contact bookings@pstax.co.uk.

Please confirm your bookings as soon as possible.