Contact us

Map

 01332 202660

email

background

OUR

PROCESS

GET IN TOUCH
WITH US

GET TO KNOW

US

BLOG

SHARE

SHARE

CONNECT

CONNECT

POST

POST

DISCUSS

DISCUSS

       Services

61 Friar Gate  Derby  DE1 1DJ

 

Registered to carry out audit work Association of Chartered Certified Accountants.

www.auditregister.org.uk under number 8011438

Member of the Association of Chartered Certified Accountants
Phone

01332 202660

Blog

HMRC confused over compensation payments

Adrian Mooy - Tuesday, March 10, 2020
 
Poor wording.

 

HMRC has amended its internal guidance regarding compensation payments for discrimination. While there was nothing incorrect about the old text it was open to misinterpretation. The new version is more helpful and precise.

 

The new guidance explains that if, as an employer, you make a compensation payment, you must consider the tax position for each element. For example, it might include not just an amount for injury to feelings caused by discrimination but also loss of earnings. Depending on whether the employee still works for you or the payment relates to the termination of their employment, the different elements might be entirely outside the scope of tax; taxable as earnings; or taxable as a termination payment (meaning that up to £30,000 is exempt).

 

HMRC has improved its guidance regarding compensation for discrimination payments made to employees. Employers must consider the tax treatment of each element of the payment not just the whole.

 

Comments
Post has no comments.
Post a Comment




Captcha Image

Trackback Link
http://www.adrianmooy.com/BlogRetrieve.aspx?BlogID=13995&PostID=814642&A=Trackback
Trackbacks
Post has no trackbacks.

News