Calculating the tax due when an employee leave employment

1. Approach

1.1. Establishing the facts

1.2. The steps in applying legislation

2. Particular situations

2.1. Pension contributions

2.2. Statutory redundancy pay

2.3. Settlement agreements

3. Tax treatment

3.1. Taxation of payments arising solely from termination

3.2. Specific exemptions

3.3. Amounts taxable only under the termination payments rules

3.4. Post-employment notice pay (PENP)

4. Procedure

4.1. Process of taxing termination payments

4.2. Benefits in kind

4.3. Reporting to HMRC