Regulations have been made to impose reporting requirements on employers who provide payments or benefits to employees after termination of the employment.
The regulations are needed as a consequence of the new termination settlement rules introduced by the Finance Act 1998 under which cash instalments and non-cash benefits are taxed as income of the tax year in which they are received.
The Income Tax (Employment)(Amendment No2) Regulations 1999 SI 1999 No 7 require employers to make a one-off report to the Revenue about termination settlements made in a particular year.
The report must be made within 92 days of the end of the tax year and for each settlement it must include the following details:
the total amount of the payments and other benefits awarded;
the total amount of the payments made in that year;
details of the non-cash benefits provided in that year;
the estimated total amount of the payments to be made in subsequent years;
a description of each of the other benefits to be provided in subsequent years, and the terms of their provision.