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 'Taxation'
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, 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 […]
Employment Law, Redundancy, Holiday, Payment in Lieu of Notice
January 10th, 2012 · 2 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, Entitlement to Untaken Accrued Holidays, Holiday Entitlement, Independent Legal Advice, Payment in Lieu of Notice, Redundancies, Redundancy, Redundancy law, Taxation, Untaken Holidays
As employment law solicitors, we regularly advise clients on employee rights in relation to redundancy, particularly around holiday entitlement and whether payment in lieu of notice is taxable (PILON). When it comes to compromise agreements, it is always advisable to clearly set out any untaken accrued holidays and PILON and to show these separately. If […]
Tags: employment law·Holiday·Payment in Lieu of Notice·Redundancy
Employment Law, Redundancy, Payment in Lieu of Notice, Settlement Payment
December 14th, 2011 · 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, Independent Legal Advice, Payment in Lieu of Notice, Redundancies, Redundancy, Redundancy law, Redundancy Pay, Taxation
In order for an employer to provide an employee with payment in lieu of notice, this must be referred to in the employee’s employment contract. Some employers are incorporating the notice period as part of the settlement payment, which is tax free. We always advise that there is a risk that Inland Revenue may decide […]
Tags: employment law·Payment in Lieu of Notice·Redundancy·Settlement Payment
Employment Lawyers Compromise Agreements – Severance Compensation – PILON
June 13th, 2010 · 2 Comments · About Compromise Agreement Blog, 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, National Insurance Contributions, Payment in Lieu of Notice, Payment Terms, Redundancy Pay, Settlement Payment, Severance Pay, Statutory Redundancy Pay, Taxation, Termination Date, Termination of Employment, Termination Payment, Your Compromise Agreement is a Binding Contract
We are receiving a number of enquiries where employers are only offering employees Payment in Leiu of Notice (PILON) as their compensation for loss of employment. Typically employers are paying Severance Compensation as follows: The employer will on its own behalf, and on behalf of all its associated companies, without any admission of liability whatsoever […]
Tags: Employment Lawyers Compromise Agreements - Severance Compensation - PILON
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
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 […]
Tags: Compromise Agreement Solicitors - Taxation of Termination Pay