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Redundancy - compromise agreements and tax
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Paymeoffplease
Posts: 2 Newbie
Hello,
I am being made redundant while on maternity leave.
My company have agreed to pay me compensation for the maternity pay I would have received. The totsl including my redundancy pay is less than £30k. The compromise agreement states that the total amount will NOT be subject to taxation.
Is this correct or are hmrc likely to see it differently?
I am being made redundant while on maternity leave.
My company have agreed to pay me compensation for the maternity pay I would have received. The totsl including my redundancy pay is less than £30k. The compromise agreement states that the total amount will NOT be subject to taxation.
Is this correct or are hmrc likely to see it differently?
0
Comments
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The Compromise Agreement will clearly state that you will get the first 30k free of tax as a redundancy payment. I have never known anyone to pay tax on a non-taxable portion of the compromise agreement. You will be required to seek independent legal advice because of it being a Compromise Agreement - the Company will pay for part or all of this advice.0
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