old - Fazer Owners Club - old
General => General => Topic started by: chilly on 22 November 2012, 08:59:18 am
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well we won our court battle for unfair dismissal and are due back in court on the 22nd of january :woot does anybody know if we have to pay tax on our compensation? we have no idea how much we will get but it could be as much as a years wage we think (hope) as far as losses go i am about £30 a week down on this gardening leave but on the other hand i am not using £20 a week on fuel so can't complain. will have to find a job in january but i will worry about that later. ;)
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Redundancy is tax free for the first £30k.
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if we got more than 30k would we pay tax on all of it or just on the amount over 30k?
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Just the part over 30K, it's counted as earned income, so subject to tax & NI.
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ta :thumbup its doubtful we will get over 30 but the solicitor said not to rule anything out ;)
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It is not a redundancy payout - it is compensation. I believe it counts as income so you should probably do a self assessment for this tax year. Best bet is to call HMRC to ask them, or an accountant.
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Hopefully not - compensation is damages for loss, not earned income. What the company might try to do is compensate you for the earnings you were due to receive post-tax and not pre-tax, as this is effectively what you have "lost".