Settlement Agreement Lawyers & Solicitors – Redundancy

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Employment Law, Indemnity, Tax, Compromise Agreement

January 11th, 2012 · No Comments · Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Employment Lawyers, Employment Solicitors, HMRC, Indemnity, Independent Legal Advice, Redundancies, Redundancy, Redundancy law, Taxation

The issue of redundancy tax can be a confusing one. Compromise agreements usually contain tax indemnities, meaning if Her Majesty’s Revenue & Customs (HMRC) makes claims for penalties from an ex-employer, the ex-employee has to indemnify the ex-employer for any taxes due. This would apply if for example, there has been a miscalculation of taxes payable under the compromise agreement.

It is advisable to have a provision in a compromise agreement to the effect that, in the event that HMRC issues a penalty against the ex-employer in relation to the ex-employee, the ex-employee then has the opportunity to discuss the penalty with the revenue services (at the employee’s cost) before the ex-employer makes payment.

If you require further information about compromise agreement tax or general redundancy rights, please contact us at enquiries@rtcooperssolicitors.com or visit one of the following pages on employment law:

© RT COOPERS, 2012. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.

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