PAYE74001 - PAYE operation: lump sum termination payments: introduction

Individuals may receive lump sum termination payments from their employer when their employment ends.

Special tax rules apply to these payments. They are covered in detail in the Employment Income (EIM) Manual at EIM 12800 - 13995, which tells you what is assessable and what relief may be due.

This section deals with the procedures to be followed by employers and HMRC Offices with regard to the operation of PAYE on such payments.