Settlement Agreements

Will I need to pay tax on the settlement sum?

Compensation sums up to £30,000 can usually be paid tax free. There are some situations where sums less than £30,000 may be taxable, for example, if the sums offered constitute wages, contractual pay in lieu of notice or holiday pay. If the employee prefers, any taxable payment can often be diverted to a pension fund, free of tax. We are able to provide expert guidance on the tax treatment of the payments you are due to receive.

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