just one last clarification.
As this seems a bit tricky, would you consider appropriate to include it in my self assessment? If I do I will receive any tax due back and if then they don't agree I would have to return a hefty sum back. Would you just take it up after sending my self assessment?
Many thanks again
HMRC guidance must always be taken with a pinch of salt. They always tend to interpret legislation as they would like it to be framed, not what it actually is which perhaps explains that they loose the majority of their disputed demands on appeal.
You can safely make a request refund over the 30K, and your tax office may well jib. I did warn you of this possibility and the need to prepare yourself dispute with over this matter. In the end the authorities can only say no and you are not out of pocket from the exercise.
I am so sorry you must be so confused which is NOT what Just Answer is meant to be about. Its meant to be a service that offers accurate and legislatively sound advise from UK tax experts - which is not always the case I am afraid and in my time working (26 years) and providing accountancy services (since 2008) none of their legislation has ever fallen into the category of "take with a pinch of salt" (would be lovely it it was!)
If you wish to questions, please do feel free to do so, and just indicate whether you wish to take mine or Keiths advise as I would not wish you to be compromised further.
Thanks to both of you,
Sam can I ask I final clarification please.
As I was forced to sign the agreement due to the threat of gross dismissal and they first wanted just to give 100£ due to confidentiality,
all of this despite I did nothing wrong in fact the regulator granted my licence back. My lawyer had asked month gross or at least 3 months in lieu considering they were a small sum compared to the bonus that would have been due to me. Apart from the stress the huge amount of money spent of lawyer I did get in the end a very small amount on which I was after all taxed. Would you think HMRC cares about any of this or just because my final doc says PILON then no tax reimbursement is due to me. Thank again
Thanks to respond, much appreciated
My answer is a careful reviewed technical answer (I never do things as standard!! or people would pay too little tax or not enough , which would defeat the object of my current accountancy and tax consultant position and make a mockery of me charging them fees advise I give! )
The issue here is that you were to be sacked dismissal and so as if it was you in breach on contract (in essence) this payment was made under those terms - and whilst I full appreciate the terrible price you have paid in view of the fact you have been cleared of any wrong doing, as you got your licence back,
HMRC can ONLY deal with the facts as they were at that time (mores the pity) Now you advise this was in recognition of the lost bonus, as they were going to sack you should you not accept the payout ,its even more a position of a payment liable to tax.
Buts all PILONS - are paid to suggest/indicate that an employee is NOT required to work notice and goes with immediate affect and the payment made in compensation of that legal entitlement. Even if your employment contract stated that you only had to work a months notice, the fact the payment was made instead of the bonus, instead of being sacked - and it was called PILON and not compensation - all amount to why all the payment was liable to tax and will remain so