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tax on compensation?
hartleysjam
Posts: 161 Forumite
in Cutting tax
Hi there, my partner lost half his big toe in an accident and is due to be paid some compensation. Approx 12k
would that be taxed?
would that be taxed?
0
Comments
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Where is the compensation from? Is it a PA policy or you claiming for PSLA from a 3rd party or is it loss of earnings?
In almost all cases it will be exempt from tax and if it is loss of earnings it would be equiv to the net earnings lost rather than gross0 -
It was an accident at work due to someones elses error
So its through a solictor and their insurance company0 -
hartleysjam wrote: »It was an accident at work due to someones elses error
No tax or NI payable - provided it meets the 4 specified criteria :
http://www.hmrc.gov.uk/paye/exb/a-z/c/compensation.htmIf you want to test the depth of the water .........don't use both feet !0
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