Termination of employment, redundancy scenarios are all very difficult times for both employers and employees especially in the current climate but trust various sections of HMRC to make it even worse. Yes, HMRC are attacking the very payments that are supposed to ease the stress and trauma of someone losing their job, so care needs to be taken. As always this employment tax expert wants to remind employers that all payments on termination of employment could have not just legal but tax consequences so get advice as early as possible because HMRC are just waiting in the shadows. There latest favourite topic is “auto PILONS” or automatic pay in lieu of notice. Here they are not looking at what is a contractual term but instead a non contractual term, what most of us would regard as damages for breach of contract. HMRC are updating their favourite “custom and practice” point and you need to make sure that not only do you get this right from now onwards but if a letter arrives on your doorstep arguing that a payment is an auto PILON you need to get advice from an employment tax expert asap, as this has serious implications both now and for potential future redundancies etc