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Our large employer client lost a case before the Employment Tribunal (ET) in late April 2011 and their employee was awarded £130 000 for disability discrimination injury to feelings and unfair dismissal.
The first £30 000 was treated as tax free and the ET said that the balance must be grossed up to cover tax at 40% and 50%.
No account was taken of the employee’s personal tax allowances or the basic rate tax band although it is fairly likely that the employee will not be working during the tax year.
The employee has been paid the £130 000 award by us but we believe that the tax liability is far in excess of what the real tax charge would be. The employee will be able to reclaim the excess from HMRC through self assessment at the end of...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
