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Legal fees tax concession on termination agreements

  • Bircham Dyson Bell
  • -
  • United Kingdom
  • -
  • May 19 2011

Employees have historically enjoyed the benefit of a tax concession which allows his or her legal fees to be paid by the employer and to escape tax when they are paid as part of a settlement agreement

Change to tax treatment of payments made after issue of P45

  • Bircham Dyson Bell
  • -
  • United Kingdom
  • -
  • April 1 2011

HMRC has instructed employers, from 6 April 2011, to withhold income tax at the appropriate rate of tax from termination payments made after issue of a P45