It is that time of year when senior executives and employees receiving a large termination payment need to give consideration to the timing of the termination payment. Given the changes happening in the new tax year to the treatment of notice this is a carefully balanced exercise.
Often for terminations in Jan/Feb/March it may be beneficial for the negotiated package to be deferred to the new tax year to avoid an employee being tipped into the next tax band or where the employee intends to take some time out or start their new business. It can be possible to negotiate a period of garden leave instead of payment in lieu to tip the employee into the new tax year if the termination date can be extended until after 6th April each year.
These are the sorts of considerations and discussions I have with clients at this time of the year every year. This may not always be beneficial as there may be reasons why the employee wishes to have an earlier termination date such as starting a new role or receiving the lump sum quickly if there are concerns over the long-term financial standing of a company.