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 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…Read More