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.
Spotlight on Global Immigration: Remote Working Requests on the Rise
In a world where hybrid working and emerging policies for remote work opportunities are becoming the norm, employers need to think carefully about the balance between regulation and being able to attract new talent. For many new and existing employees the company’s approach to remote working potential can be a significant factor in deciding whether…
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