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Ex Gratia Payments

A settlement agreement normally includes a payment made by the employer to the employee. A termination payment is sometimes also known as a compensation payment, severance payment (particularly in the US) or an "ex-gratia" payment.

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.

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British Citizens in Europe

British Citizens and EU Member State Immigration Policy  Preparing for a “no-deal” Brexit On Tuesday 15 January 2019 Members of Parliament (MPs) rejected the Withdrawal Agreement negotiated between the British government and the European Union. British nationals and their family members who are currently working and living in EU member states face immigration uncertainty if the UK leaves…

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Changes for Entrepreneurs and Investors

Changes announced on Thursday 7 March The Government has announced imminent and substantial changes to the Tier 1 (Entrepreneur), (Graduate Entrepreneur) and (Investor) routes. New Start-up and Innovator visa categories will be introduced for those who wish to come to the UK to set up in business, replacing the Tier 1 (Graduate Entrepreneur) and Tier…

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Brexit Briefing: The Clock Ticks Ever Louder

In this issue: Brexit Deal – public testing of the EU Settlement scheme No-Deal Brexit – Immigration from the EU from 30 March 2019 Implementing Brexit: An end to free movement – Immigration & Social Security Co-Ordination (EU withdrawal) Bill British Citizens & EU Member State Immigration policy – preparing for a no-deal Brexit  …

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