It is customary for a settlement agreement to be concluded shortly before or after the termination of an employee`s employment contract. These agreements are sometimes used when redundancies are made, but they can be used in a number of situations. If you are negotiating a transaction agreement with your employer, it is important to understand the tax rules that apply to each payment you may receive. It should be noted that the £30,000 tax exemption is a sum of all these payments relating to this employment. If you received a payment from a previous transaction agreement, it can be taken into account at the same limit. If you add all payments, you must include all payments from the same job.
Tax Relief On Settlement Agreements
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