Eric! HMRC payment of tax/NI on Compromise Agreement
Discussion
Eric Mc said:
As long as the payment was made "Ex Gratia".
If it was part of an employment contract or under agreed terms and conditions of leaving your position, then the £30,000 exemption will not apply.
Thanks Eric, I appreciate your reply If it was part of an employment contract or under agreed terms and conditions of leaving your position, then the £30,000 exemption will not apply.
The deal was not part of of my employment contract. The payment is a mutually agreed amount, payable when I leave in 6 months.
As such it is not 'salaried' and will be set out in the Compromise Agreement as part of the conditions for signing such an agreement and leaving my position.
Does that help or may I bounce it via you off line if easier to spell out the more sensitive parts of the deal?
You have to be very careful with these lump sum payments. The important thing is that the paperwork supporting the payment states categorically that the payment was "Ex Gratia" and was not any sort of settlement of monies due for work done, or pay in lieu of notice or standard redundancy.
Eric Mc said:
You have to be very careful with these lump sum payments. The important thing is that the paperwork supporting the payment states categorically that the payment was "Ex Gratia" and was not any sort of settlement of monies due for work done, or pay in lieu of notice or standard redundancy.
Sterling advice I'll mention it to my FD.
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