The First-tier and Upper Tribunal decisions in Murphy

As someone who did maths at school and university I can still remember some of it and it continues to be useful even in the tax world.

The employment tax case of Keith Murphy (TC7936) is interesting and the Upper Tribunal decision reversing the First-tier Tribunal is even more interesting ([2021] UKUT 152 (TCC)).

A group of Metropolitan police officers sued the Met for alleged unpaid overtime and failure to pay certain allowances. They engaged a firm of lawyers and a barrister to pursue their claim and even took out insurance to cover legal costs in case they lost.

The Met settled out of court under the terms of a group settlement (or compromise) agreement.

The word used was ‘settlement’ rather than ‘compromise’. Compromise implies an employment dispute whereas settlement could refer to anything and so might even be a capital receipt following Zim Properties v Proctor [1985] STC...