Member to Table A2.1 of this year's Financial Statement and Budget Report. The earnings of all employees and directors, including money received on redundancy as pay in lieu of notice and holiday pay, are taxed in the year in which they are received instead of the year for which they were earned. This way of taxing earnings was introduced in the 1989 Budget in order to simplify the method of assessment. There are no current plans to change this treatment. Tax treatment of payments in lieu of notice and holiday pay Payments in lieu of notice are taxable in full if they are provided for in the contract of employment or if the employer customarily pays them.
Holiday pay owed is taxable in full.
All of the above payments are taxed in the year in which they are received. Member to the replies I gave on 9 May 2000, Official Report, column 334W, and on 10 May 2000, Official Report, columns 400-01W, on the same subject. Where goods are moved in transit through other EC countries while en route to non-EC countries, exporters are required to state the final country of destination on their customs declarations. Customs produce trade statistics on the basis of the declared final country of destination and do not record transit details. The European trade statistics system does not allow for the identification of these movements.