Docklands Solicitor

Latest legal news from Docklands Solicitors, Kaslers Solicitors LLP.

Wednesday, 10 December 2008


Tax on monies received on termination of employment

HMRC may analyse how the payment is made up, even if it is expressed as one lump sum

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


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Call Michael Breeze on 07900 195 195 or call 0845 270 2511 to if you need legal advise about any of these issues

Kaslers Solicitors LLP is a limited liability partnership registered in England under LLP no. OC310653; authorised and regulated by the Solicitors Regulation Authority under reg no 408936; governed by professional rules set out in the Code of Conduct click here to visit and has its registered office / main trading address at Suite 3, 10 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU - tel: +44 (0)845 270 2511; fax: +44 (0)845 270 2513; DX 92863 West Malling.
The LLP Members are Michael D Breeze LL.B (Hons) (SRA reg no 110184) and Simon McCree Scott LL.B (Hons) (SRA reg no 298202).