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.
Today marked the start of the public test phase of the EU Settlement Scheme. The EU Settlement Scheme provides a basis, in line with the draft Withdrawal Agreement published on 14 November 2018, for EU citizens resident in the UK, and their family members, to apply for an UK immigration status. This will be required…Read More