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bigduckontax, Accountant
Category: Tax
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I am receiving a settlemnt from an employment contract

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Hello i am receiving a settlemnt from an employment contract for income due while i was an em
ployee. If i take the100k and pay the lawyers and hmrc there is nothing left over. Are there any othr options to shelter this income?
If this is a redundancy payment then the first 30K is tax free. If this is a settlement of a legal action for damages then it is tax free. If you can get this paid into a pension scheme, 40K max contribution this tax year then it would effectively be tax free. Otherwise, I regret that you are caught by Benjamin Franklin's dictum that in life there are but two certainties, death and taxes.
Rating not understood, you have not made any follow up questions to clarify my reply if you so require.
Customer: replied 2 years ago.
Hello rating was because your answer was incorrect, inprecise and obviously googled.
In my training as an accountant I was always taught that looking things up was the correct course of action.
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