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.
British Citizens and EU Member State Immigration Policy Preparing for a “no-deal” Brexit Members of Parliament (MPs) have been unable to reach agreement and ratify the Withdrawal Agreement and Political Declaration reached between the British Government and the European Union. This is despite a new deal being reached between the Johnson government and the EU…Read More