We are still being asked about taxation of Settlement Payment or some people refer to it as Termination Payment. The correct advice is that the first £30,000 of an employee’s Termination Payment will be paid without deduction of income tax in accordance with section 403 of the Income Tax (Earnings and Pensions) Act 2003. If an employee’s Settlement […]
Entries Tagged as 'Basic Rate of Tax'
Compromise Agreement Solicitors – Taxation of Termination Pay
November 7th, 2009 · 4 Comments · About Compromise Agreement Blog, Basic Rate of Tax, Compromise Agreement Solicitors, Compromise Agreements, Settlement Payment, Signing Compromise Agreements, Taxation, Termination Date, Termination Payment
Tags: Compromise Agreement Solicitors - Taxation of Termination Pay
Tax Indeminty
July 17th, 2009 · 38 Comments · Basic Rate of Tax, Compromise Agreements, National Insurance Contributions, Post Termination Restrictions after Signing a Compromise Agreement, Signing Compromise Agreements, Your Compromise Agreement is a Binding Contract
Each compromise agreement has a tax indemnity. It usually causes a lot of discussions when we are advising Employees. It is a safe guard for the Employer in case the Employer has to make a payment to the Inland Revenue in respect of pyaments made to an Employee under a compromise agreement. A typical tax […]
Tags: Tax Indeminty
What does payment of salary in Lieu of Notice mean?
March 14th, 2009 · 17 Comments · Basic Rate of Tax, Compromise Agreements, Contract of Employment, National Insurance Contributions, Payment in Lieu of Notice, Payment of Normal Salary
A number of employees that we come across do not seem to know the meaning of payment in lieu of notice. What does it mean? It means that your employer is paying you upfront so you do not have to work out your notice period. So, for instance, if you have a 3 months’ notice period […]
Taxation of Redundancy Payment
February 26th, 2009 · No Comments · Basic Rate of Tax, Compromise Agreements
This week we have had so many employment clients seeking advice on their Compromise Agreements and asking us the same question over and over again i.e. whether it is basic rate tax or the higher rate tax that is payable on compensation by an employer for making an employee redundant. The answer is any amount over £30,000.00 will […]
Basic Rate of Tax
February 16th, 2009 · No Comments · Basic Rate of Tax, Compromise Agreements
You will only pay basic rate of tax on your compensation (redundancy pay) over £30,000.00. Please rememebr that your payment in lieu of notice would be taxed in the normal way i.e at your normal tax rate.
Tags: Basic Rate of Tax