A new tax relief will soon be introduced that will allow employees to cut the income tax they pay on legal support from their employer when they are called to give evidence in court as a witness.
During the Autumn Statement the Chancellor announced that the new system of tax relief will “help support all employees and ensure fairness in the tax system”.
At the moment this relief is only offered to those employees requiring legal support because of allegations made against them, but following this new move all employees will benefit.
Although it is rare that employees called to give evidence require legal support, the move has been seen by some as a way of levelling the playing field for employees acting as witnesses.
In most cases legal advice is provided by the employer through their solicitor but in rare cases an employee may seek to take their own legal advice and in these cases they will no longer be penalised through their income tax bill.
Link: Autumn Statement