Compensation for injuries at work

By Tolley in association with Philip Rutherford
Employment_tax_img4

The following Employment Tax guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • Compensation for injuries at work
  • Introduction
  • Compensation payments
  • Injuries to feelings

Introduction

If an employee is injured as a result of something that happens at work then, in certain circumstances, compensation payments can be made to them which have no tax, NIC or reporting requirements.

Issues regarding compensation payments for injuries suffered at work are covered in EIM06450.

Compensation payments
Lump sums

There are no tax, NIC or reporting requirements associated with compensation payments for injuries suffered at work as long as the following requirements are satisfied:

  • the payment to the employee is of the same nature and magnitude that would be made to a member of the public suffering the same injury
  • the

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