What are the Tax Implications of Settling an Employment Tribunal Claim?
20th May, 2022When paying money to settle Employment Tribunal (ET) proceedings, employers are not infrequently motivated by a desire to make what they perceive as a nuisance go away – but how should such payments be treated for tax purposes? The First-tier Tribunal (FTT) tackled that thorny issue in a guideline case. A senior bank employee was dismissed following a regulator's investigation into an aspect of the bank's business. She asserted that she had been made a scapegoat and thrown under a bus by a white male cartel at the bank. She...