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.
On 20th February 2020 the Home Office will open the new Global Talent (GT) immigration category to new applicants from around the World. This is a further step in the development of an immigration system that is fit for purpose on 1 January 2021 when the UK leaves the EU Single Market. Replacing Tier 1…Read More