Contractual payments must be made subject to usual deductions for tax and national insurance. Whereas a genuine ex-gratia payments are not made for work that has been undertaken or for a provision of services or under a contract of employment and are essentially compensation for loss of employment or a “gift” by the employer. Consequently they can be paid free of tax up to £30,000 pursuant to section 403 of the Income Tax (Earnings and Pensions) Act 2003.
As the summer draws to a close, employers in all sectors are beginning to welcome staff back to offices and other physical workplaces. However, the pandemic has shifted expectations on all sides, with agile working (involving a mix of home and office working) increasingly becoming the norm in certain sectors. Recruitment Working from home has…Read More