SE12827 - Termination payments and benefits: handling enquiries - Employer's Further Guide to PAYE & NICs (CWG2)

In addition to the situations explained in SE12825, there are a few enquiries concerning proposed terminations to which we are committed to giving binding answers where COP10 (see SE12820) does not require it (if the enquirer wishes). These enquiries should be dealt with in the same way as those requiring a formal binding answer (see SE12825). They are all mentioned in CWG2 and concern:

• the disability and injury compensation exemption (see SE13610).
• the 'foreign service' exemption (see SE13680) and reduction (see SE13700)
• payments by third parties. In this situation advice may be needed as to how the £30,000 exemption (see SE13505) is to be given to payments made by the third party and by the employer
• non-cash provisions (see SE13250).

In these cases agree with the customer what the tax treatment of the payment or benefit is.

In all these cases, the timescale for your reply must be reasonable and you must be satisfied that all the information you need has been provided. If either of those requirements is not met, you should give as complete an answer as possible and explain that it cannot be binding in the circumstances.