EIM13870 - Termination payments and benefits: employer's PAYE responsibilities

Section 401 ITEPA 2003

A payment or benefit chargeable under Section 401 ITEPA 2003 is subject to the PAYE Regulations. So the payer must deduct tax if a sum is chargeable after applying the threshold, exceptions and relief (see EIM13500 and subsequent guidance).

The Employer's Further Guide to PAYE and NICs (CWG2) tells the employer what to do.