Are Settlement Agreements Tax Free?

Since April 2018, the Finance Act (2018) has made it clear that notice pay must always be taxed and subject to National Insurance.

All Settlement Agreements require employees to indemnify their employer on any excess tax which remains unpaid after termination. This means that if there is excess tax, the employee would have to pay.

It is important that your legal adviser goes through the Settlement Agreement, to work out that the correct amount of tax is paid at the right time.

If you have any queries about your Settlement Agreement and the tax and National Insurance that needs to be paid, please contact our Employment Law team:

https://www.ms-solicitors.co.uk/about...

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