PAYE74010 - PAYE operation: lump sum termination payments: giving relief before termination payment made

The Employer Further Guide to PAYE and NICs (booklet CWG2) gives advice to employers on ‘How to treat payments made when an employee stops working for you’. An employer may still seek advice from you on how to deal with such lump sum payments.

In certain circumstances you can give provisional relief by telling the employer to make a reduced PAYE deduction from the payment.

Before giving provisional relief you must have

• The information needed to work out the relief

And

• That information early enough for the relief to be worked out, agreed and notified to the employer before the termination payment is made

If these conditions are met, follow the instructions given in ‘Giving Relief Before Termination Payment Made (Action Guide)’ at PAYE74011.