Compromise Agreement Tax - Employers point of view
Compromise Agreement Tax and the amounts subject to tax are listed below.
A prudently drafted Compromise Agreement will itemise each component of the resulting financial settlement. The specific text of the Agreement itself and the employee's own contract may determine the outcome. If you are in doubt about tax liabilities it may be prudent to consult an independent tax specialist. In addition, pay particular attention to the exact wording of the Tax Indemnity clause(s) in the Agreement itself.
Click here for more information about:
- Taxable Sums
- Non-cash Benefits
- Payment in Lieu of Notice (PILON)
- Ex Gratia Payment
and links to the specific HMRC briefing notes.