Income Tax (Pay As You Earn) (Amendment) Regulations 2011

This came into force on 6th April 2011.  Prior to its introduction when a payment was made to a departed employee after their P45 had been produced, Income Tax was always deducted at basic rate only.  However, since 6th April 2011, tax at the full 20%, 40% or 50% rates must be deducted from post termination payments (using the “0 T” tax code).

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