Docklands Solicitor
Latest legal news from Docklands Solicitors, Kaslers Solicitors LLP.
Wednesday, 10 December 2008
Tax on monies received on termination of employment
You will usually have to pay tax (PAYE) / national insurance (“NI”) on any wages and holiday pay.
If employer has a contractual right to make a payment in lieu of notice, you will usually have to pay PAYE /NI on any such sums
If employer has no contractual right to make a payment in lieu of notice, then payments in lieu of notice are tax free
Benefits such as continued use of a mobile phone or company car are usually tax-free.
Generally, the first £30,000 of a redundancy payment (either contractual or statutory) / compensation for loss of employment is tax-free.
A Compromise Agreement will normally makes it clear that, if the Inland Revenue requires PAYE /NI, you (and not the employer) will be responsible for paying it.
If you need to get an independent solicitor to sign off your Compromise Agreement, call 020 7712 1751 or direct on 07 900 195.195 to see our senior partner Michael Breeze at our Docklands consulting rooms One Canada Square, London E14 5DY
Labels: compromise agreement
Tuesday, 9 December 2008
What To Do When Someone Dies
So what is probate?
Obtaining the Grant of Probate is the process to officially proving the validity of a Will. If you know a Will was left, you will need to find it. It is likely the person held a copy of their Will and it should indicate where to find the original.
If you cannot find a copy of the Will in the person’s home, check with Solicitors, Banks and the Central Probate Registry who can hold the Wills of living people in safe custody.
Valuations
Whether or not a Will is found, you will need to find out the precise value of the estate (property, money, possessions etc), as at the date of the death. Take proper advice, don’t guess because H M Revenue and Customs may fine you if you get it wrong! The amount of any debts needs to be established, including mortgages, household bills, credit cards etc. The funeral account is also a debt due from the Estate.
The Grant
You need to apply for a Grant of Representation- Grant of Probate, if there is a Will, or Grant of Letters of Administration if there is no Will. The Grant is proof that the person or persons named in it are entitled to collect in and distribute the estate.
In some cases, banks and building societies will release money without a Grant, but generally not where the whole estate is worth over £5,000.
Inheritance Tax
If the value of the estate exceeds £312,000 (tax year 08/09) you will have to pay Inheritance Tax at the rate of 40% on everything over £312,000. Some Inheritance Tax has to be paid to H M Revenue and Customs before the Grant is issued.
The Executors of the Will or Personal Representative are personally liable for Inheritance Tax- beware and make sure all tax is paid before making the final distribution.
Beneficiaries
Beneficiaries named in the Will, or those entitled under the Intestacy rules where there is no Will, need to be traced and contacted
After the Grant is issued
Bank accounts etc can be closed and assets sold. The money is paid into an Estate Account. Liabilities are met, as it is important to make sure that all debts are paid. An Advertisement for Creditors is made to protect the personal representatives from anyone claiming to be a Creditor in the future. The Executors then distribute the money/assets in accordance with the Will or Intestacy Rules.
For more information or to make an appointment regarding Probate or Wills with Kaslers Solicitors LLP please call Vanessa Adamson on 01622 844607 Mobile 07901 843 191 Email: va@kaslers.co.uk
Labels: wills probate inheritance tax executors intestacy
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