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• make all PILONs (payments in lieu of notice) taxable, even if they are non-contractual;
• require payment of employer NICs on sums over £30,000 (not currently payable);
• ensuring payments for injury to feelings are subject to tax (there is currently a conflict of judicial authorities on this point)
The precise wording of the draft legislation is open for consultation until 5 October.
We will provide further information about these proposed changes when the consultation period has closed.
Andrew Macmillan, Solicitor, Motor Industry Legal Services