ChatterBank2 mins ago
ex-gratia payments
My wife may receive an ex-gratia payment as a consequence of an employment issue. Is this subject to income tax and NI contributions as a wage would be?
Answers
1 to 2 of 2
Best Answer
No best answer has yet been selected by Fulton. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.
Its all according what it was for
If it was part of a negotiated settlement for her to leave the company, and either an Acas agreement or a compromise agreement was entered into, then its normally tax free up to �30,000
If its "pay" then it should be subject to tax and NI. If its pay in lieu of notice, then it may be subject to tax and NI but you need to look at her terms and conditions of employment to see if its a contractual term or not.
You can get more advice from the Acas helpline on 08457 47 47 47
If it was part of a negotiated settlement for her to leave the company, and either an Acas agreement or a compromise agreement was entered into, then its normally tax free up to �30,000
If its "pay" then it should be subject to tax and NI. If its pay in lieu of notice, then it may be subject to tax and NI but you need to look at her terms and conditions of employment to see if its a contractual term or not.
You can get more advice from the Acas helpline on 08457 47 47 47
1 to 2 of 2
