Advice wanted on paying tax on tribunal payout

Dcal66

Hi I am looking for some tax advice particularly regarding paying tax on a payout from an employment tribunal settlement.

I have been awarded a substantial amount in an out of court settlement with an old employer. 

This will now put me well over the 40% tax bracket so do I have to pay 40% tax on this or is there a way to back date this to a previous year as it was about 4 years ago I worked for this employer.

Also do I declare the full amount awarded and then put the amount that the solicitors took as payment in the expenses section. 

Hope to get some advice

DullGreyGuy

What you pay your solicitors comes out your net pay not gross. 

sheramber

Solicitor’s fees will not be an allowable expense.

Depending on the reason/s for the payout part may not be taxable. 

Bookworm225

you need to establish the basis of the pay out as some will be taxable, but some may not be, for example:
- is it from an entitlement to be paid for the job you did, noting the distinction between arrears or backdated ?
and/or
- is it "compensation" ?

EIM42265 - Employment income: basis of assessment for general earnings: meaning of "received": backdated pay and arrears of pay - HMRC internal manual - GOV.UK

Check what happens if you win your employment tribunal case - Cyngor ar Bopeth