Change Of Tax Rules On Compromise Agreements

Did you know that from 6th April 2011 new regulations come into force regading tax payable on compromise agreements?

It will no longer be okay for a former employer to deduct basic rate from any sum over £30,000.  If the ex employee is a higher rate tax payer, then the higher rate of tax of 40% or 50% must be deducted at source by the employer.