As employment law solicitors, we regularly advise on redundancies and have encountered situations where employers would like to make redundancy payments, which include payment in lieu of notice (PILON). Where this occurs, it is normally stated in a compromise agreement that part of the redundancy pay is for notice pay. We would like to reiterate […]
Entries Tagged as 'HMRC'
Employment Law, Redundancy, Payment in Lieu of Notice, Tax, National Insurance
April 10th, 2012 · 2 Comments · Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Employment Lawyers, Employment Solicitors, HMRC, Indemnity, National Insurance Contributions, Payment in Lieu of Notice, Redundancies, Redundancy, Redundancy law, Redundancy Pay, Taxation
Tags: employment law·National Insurance·Payment in Lieu of Notice·Redundancy·Tax
Employment Law, Redundancy, Compromise Agreements, Tax Indemnity, HMRC
March 29th, 2012 · No Comments · Choosing an Independent Legal Advisor to provide Advice on the Terms of your Compromise Agreement, Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Employment Lawyers, Employment Solicitors, HMRC, Indemnity, Redundancies, Redundancy, Redundancy law, Taxation
There is still some confusion around the fact that an employer will have a tax indemnity in a compromise agreement to ensure that if HMRC makes a demand for payment in tax in relation to a specific employee, that employer is indemnified. As UK employment law solicitors, we regularly advise employees facing redundancy on their […]
Tags: Compromise Agreements·employment law·HMRC·Redundancy·Tax Indemnity
Employment Law, Redundancy, Compromise Agreements, Tax Indemnity, HMRC
March 22nd, 2012 · No Comments · Choosing an Independent Legal Advisor to provide Advice on the Terms of your Compromise Agreement, Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Employment Lawyers, Employment Solicitors, HMRC, Indemnity, Independent Legal Advice, Redundancies, Redundancy, Redundancy law, Redundancy Pay, Taxation
Matters relating to tax in redundancies and tax indemnities in compromise agreements can be tricky. Although compromise agreements usually state redundancy pay is in full and final settlement and there will be no deductions of tax from the redundancy payment, tax indemnities mean, if the calculations for redundancy pay are incorrect and HMRC has sent […]
Tags: Compromise Agreements·employment law·HMRC·Redundancy·Tax Indemnity
Employment Law, Redundancy, Compromise Agreements, Payment in Lieu of Notice, Tax
March 16th, 2012 · No Comments · Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Contract of Employment, Employment Lawyers, Employment Solicitors, HMRC, Independent Legal Advice, Payment in Lieu of Notice, Redundancies, Redundancy, Redundancy law, Redundancy Pay, Taxation
When advising employees on their redundancy rights and the terms of their compromise agreements, we are seeing situations where employers are including payment in lieu of notice (PILON) in employees’ redundancy payments. Any PILON is taxable and an employer does not have to make a PILON unless there is a provision in the employee’s employment […]
Tags: Compromise Agreements·employment law·Payment in Lieu of Notice·Redundancy·Tax
Employment Law, Compromise Agreements, Confidentiality, Post-Termination Restriction
January 31st, 2012 · No Comments · Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Confidentiality Provisions in a Compromise Agreements, Employment Lawyers, Employment Solicitors, Employment Tribunals, HMRC, Independent Legal Advice, Necessity for Legal Advice on the Terms of Your Compromise Agreement, Post Termination Restrictions after Signing a Compromise Agreement, Redundancies, Redundancy, Redundancy law, Restrictive Covenants
We commonly receive the question “what is a compromise agreement?” from clients and more particularly, enquiries as to the remit of confidentiality provisions in compromise agreements. When advising on redundancy rights we make clear confidentiality means that you cannot disclose, not only the compromise agreement itself and its terms, but also the fact that you entered […]
Tags: Compromise Agreements·Confidentiality·employment law·Post-Termination Restriction
Employment Law, Indemnity, Tax, Compromise Agreement
January 11th, 2012 · No Comments · Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Employment Lawyers, Employment Solicitors, HMRC, Indemnity, Independent Legal Advice, Redundancies, Redundancy, Redundancy law, Taxation
The issue of redundancy tax can be a confusing one. Compromise agreements usually contain tax indemnities, meaning if Her Majesty’s Revenue & Customs (HMRC) makes claims for penalties from an ex-employer, the ex-employee has to indemnify the ex-employer for any taxes due. This would apply if for example, there has been a miscalculation of taxes […]
Incorrect calculation of redundancy payment and negotiating with HMRC
October 26th, 2011 · No Comments · Calculating Redundancy Pay, Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Employment Lawyers, Employment Solicitors, HMRC, Indemnity, Redundancies, Redundancy, Redundancy law, Redundancy Pay
Employers should allow employees the opportunity to communicate and/or negotiate with HMRC in the event that the calculations for redundancy pay are incorrect and HMRC has sent a demand or assessment to the employer (Past), on behalf of the employee. The preferred position is for the employee to deal directly with HMRC rather than the […]
Tags: employment law·HMRC·Incorrect Calculation·Negotiation·Redundancy Payment