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Contents

Official guidance
PAYE Manual

PAYE74000 · PAYE operation: lump sum termination payments

  • PAYE74001 · Introduction
  • PAYE74015 · How employers operate PAYE on termination payments
  • PAYE74020 · Payment made into court following arbitration
  • PAYE74025 · Repayment claims following termination payment
  • PAYE74030 · Termination payment notification received
  1. PAYE operation: lump sum termination payments: contents
  2. PAYE operation: lump sum termination payments: payment made into court following arbitration

PAYE74020 | PAYE operation: lump sum termination payments: payment made into court following arbitration

From HM Revenue & Customs · PAYE Manual

In this context, `Court' is to be taken to cover a stakeholder or solicitors acting onbehalf of an employer or employee.

An employer may make payment(s) into Court if a former employee or office holder takes acompensation claim there for arbitration. The Court will then make any appropriatetermination payment to the individual.

When the Court makes payment

  • Ensure the individual is brought within SA, if an SA record does not already exist

  • Write to the individual advising him or her that

Content shown with reduced fidelity

Tax is due on the payment by the Court He or she should include the payment in his or her self assessment for the year in which the payment was received Credit for PAYE deductions (if PAYE was operated) may be claimed in the self assessment

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