Tax Disputes & Investigations

Specialist Employer Services (Termination Payments & Expatriate Employees)

Termination Payments

Payments made to employees on the termination of their employment are regularly reviewed and challenged by HM Revenue & Customs (HMRC). Many people mistakenly believe that that any and all payments up to £30,000 are tax free. This is not the case.

Where the correct amount of tax has not been deducted, HMRC will always seek to recover the shortfall from the business. This can, in turn, lead to expensive legal action against a former employee to try and enforce indemnities and recover monies.

We regularly advise business on the correct structuring and treatment of any termination payments, including: -

• When does the £30,000 exemption apply?
• What other tax exemptions can possibly apply to termination payments?
• Compromise Agreements;
• Redundancy Payments;
• Ex-gratia payments;
• Compensation payments (perhaps for loss of office);
• Damages payments; and
• Partial deferment of tax for those payments which are taxable.

Alternatively, if HMRC has already challenged the payments made, we advise businesses on any retrospective demands for tax/NICs and regularly help reduce the exposure faced.

Expatriate and Inpatriate Taxation

Dealing with payments made to employees either leaving or coming to the UK can be troublesome. We provide constructive advice to properly structure the intended payments and handle issues such as: -

• When is the operation of UK PAYE appropriate?
• Short-term visitors to the UK – what can they receive tax-free?
• Notifying HMRC of new workers coming to the UK and ensuring their tax affairs are set up correctly;
• Dual contract arrangements;
• Tax equalisation schemes;
• Double Taxation Agreements and Bi-Lateral Social Security Agreements; and
• Workers posted/seconded abroad

These are complex areas of tax law. Specialist HMRC teams regularly review those businesses known to use inpatriates or who second their workers overseas. Experienced, professional advice in this area is essential.

How can OneE TDI help?

At the core of OneE TDI is a highly experienced team specialising in all areas of tax disputes and investigations work. We offer confidential, non-judgemental advice to best defend our clients and have a proven track record in successfully managing all contentious tax matters. We have successfully defended numerous businesses challenged by HMRC in relation to termination payments and expatriate/inpatriate taxation issues and ensured that any enquiry or dispute with HMRC was resolved quickly, fairly and with little disruption to the business itself. We provide a comprehensive service to accountancy and legal practitioners and their clients. Our advice saves our clients time and money and helps reduce their potential exposure to tax, interest and penalties.

Putting it simply, we take control of and manage all issues relating to termination payments and expatriate/inpatriate taxation so you can get on with your life and your business. What price peace of mind?

Please see the Testimonials kindly provided by our clients (or their accountants or lawyers), which confirm our levels of client service.

How can I contact OneE TDI?

If you would like a free, no obligation discussion with us, please contact either Gary Rowson or Mark Taylor on 0800 652 6156 or complete and submit the online form below.

Whilst we endeavour to provide informative and accurate information, the content on this site is for general information purposes only and should not be taken to constitute tax or legal advice which must always be tailored to individual circumstances. Please contact us if you would like to discuss matters.

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