Philip Fisher considers the impact of the FTT decision in Martin concerning tax relief for negative earnings.
In making his decision in the case of Martin v HMRC judge Howard Nowlan may offer hope to many taxpayers who are taxed on salary or bonuses from which they never ultimately benefit.
In the case of Martin v HMRC [2013] UKFTT 040 (TC) Mr Martin an employee was offered a refundable signing bonus of £250 000 on entering into a new contract with his employers. It was repayable on a sliding scale if employment ended within five years. Subsequently he left the company and repaid £162 500.
PAYE and NIC were accounted for on receipt of the bonus as one would...
