- SMP not included in Settlement Agreement (Campus Living Villages UK v HMRC & Sexton)
- Original news
- What are the practical implications of this case?
- What was this case about?
- What did the FTT decide?
- SMP and bonus payment
- Inclusion of SMP in Settlement Payment
- Involvement of ACAS
- What should tax and employment lawyers take note of?
- Case details
Tax analysis: the First-tier Tax Tribunal (FTT) has agreed with HMRC’s assessment that a payment made by Campus Living Villages to its former employee, Ms Sexton, under a Settlement Agreement did not relieve the company of its obligation to pay Statutory Maternity Pay (SMP). This was irrespective of the fact that the Settlement Agreement had been made under the auspices of an ACAS officer. In addition, the payment of Ms Sexton’s discretionary bonus had correctly been incorporated in HMRC’s SMP calculations.
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