When two Spurs players, Peter Crouch and Wilson Palacios, were transferred to Stoke they were paid over £1m by Spurs for terminating their contracts early. This was treated as a termination payment on which no National Insurance Contributions (NIC) were due albeit tax was due on all but the first £30,000. HMRC disagreed and tried to assess NIC. They appealed to a Tax tribunal where they lost and subsequently lost the appeal.

However HMRC will get the last laugh as the legislation changes in their favour on 6th April 2018 - a case of moving the goalposts maybe!

This is a complicated area, at Booth Ainsworth we have an expert who is qualified to deal with termination payments. If you would like to speak to some one about this subject please contact Dawn Foden-Smith or your usual contact at Booth Ainsworth.

This blog has been written by David Powell, Managing Partner at Booth Ainsworth LLP.