In Mr A v HMRC, the First-tier Tribunal held that a payment made by a bank to an employee under a compromise agreement was made to settle a potential race discrimination claim and was not ‘earnings’ from employment, even though it was calculated by reference to loss of earnings. In reaching its decision, the FTT focused on the reasons why the payment was made by the bank, rather than the fact it represented underpayments of salary and bonuses.
Karen Cooper and Mairi Granville-George (Osborne Clarke) examine the Mr A v HMRC decision on a payment made by a bank to an employee under a compromise agreement.
In Mr A v HMRC, the First-tier Tribunal held that a payment made by a bank to an employee under a compromise agreement was made to settle a potential race discrimination claim and was not ‘earnings’ from employment, even though it was calculated by reference to loss of earnings. In reaching its decision, the FTT focused on the reasons why the payment was made by the bank, rather than the fact it represented underpayments of salary and bonuses.
Karen Cooper and Mairi Granville-George (Osborne Clarke) examine the Mr A v HMRC decision on a payment made by a bank to an employee under a compromise agreement.