Businesses will always seek to protect themselves against additional tax that HM Revenue & Customs may assess due, by including a tax indemnity clause in the settlement agreement.
The tax indemnity is a promise by the employee to make good the loss sustained by the employer (relating to tax payments) and to compensate the employer for such loss.
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When are they used? What's in them?
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Is a settlement agreement offered when staff are redundant?
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Tax on severance pay, redundancy, accrued holiday and more
Who is liable for tax?
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