In his latest article, Beach Hut Specialist Richard Ramshaw discusses how much a beach hut is likely to set you back, why some are so expensive and the process involved in buying.
The government is consulting on streamlining the tax treatment of termination payments. As it currently stands, the first £30,000 of any non-contractual termination payment benefits from no tax or national insurance deductions. The government is considering eradicating the distinction between contractual and non-contractual payments and changing the fixed £30,000 tax-free lump sum to a figure which increases the longer an employee has worked for an employer. They are also considering introducing a two year qualifying period, which would mean that no employees can receive a tax-free termination payment unless they have worked for an employer for over two years. Finally, they are discussing whether to start taxing some or all injury to feelings awards. Although the consultation document does not precisely delineate the sums or thresholds, a worked hypothetical scenario suggests a £6,000 tax-free sum after two years' employment, increasing by £1,000 for each additional year of employment.
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If the government does decide to implement these discussed changes, it will result in a significantly reduced tax-free sum being available for almost all employees when their employment terminates. The suggestion of a two year qualifying period may also be attractive to employers.
Our Employment team based in Christchurch also cover Bournemouth, Poole and the New Forest. For a free initial chat, please call 01202 499255 and Paul or a member of the team will be happy to discuss any questions that you may have.
