This notice will be of interest to:
1. EPN 556, EPN 552 and EPN 523 detailed that employers would be charged Class 1A National Insurance contributions on Exit awards (including Voluntary, Compulsory and Efficiency) from 01 January 2019. However implementation of this change was delayed.
2. The purpose of this EPN is to provide confirmation of the need for employers to deduct class 1A employer National Insurance contributions on termination awards from 06 April 2020. Guidance on how to deliver these changes can be found below. More information can be found at paragraph 3.12 on page 42 of the 2018 Budget.
3. Responsibility for the payment of Exit awards passed to employers on 01 January 2019. Employers are reminded that they are responsible for making all relevant deductions and payments, including Income Tax and National Insurance as appropriate.
4. From 06 April 2020 your payroll provider(s) will need to deduct Class 1A National Insurance contributions due on Exit awards and pay them to HMRC through Real Time Information.
If you need to speak to the Scheme Administrator (MyCSP) about your exit scheme please contact firstname.lastname@example.org
For Scheme Manager (Cabinet Office) approval of new or revised Voluntary Exits schemes, please contact email@example.com
If you have a question about the distribution of EPNs, or would like to receive them in a different format, please contact EPN@MyCSP.co.uk.
This notice is for employers and should not be issued to scheme members.
Members can find information about their pension by visiting the member's section.