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What are golden handshakes?

Golden handshakes are payments to an individual upon termination of employment and may also be known as lump sum payments.There are cases where such payments are not taxed at all, which are those post-death when an employee has died in service, and in some cases payments due to disability may qualify for exemption. Those are outside the norm.For the most part termination payments are taxable under special rules. The first £30,000 of a leaving payment will be exempt from tax if it is an ex-gratia payment and therefore non-contractual. One may have to make the case … Continue Reading

A tax practitioner’s view of the economy – why we have reason to be worried

Dealing as I do with the nitty-gritty results of small business owners’ efforts, I am puzzled by some of the predictions for the economic recovery and in relation to the recent short term sales figures of certain more successful stores, notably John Lewis, Marks and Spencer, and House of Fraser.  My perception is that service businesses have had a very poor year, and it is perhaps poorer in 2009-10 than for the 2008-09 period to March last year. I believe there is a huge gap between the self-employed (and I include micro businesses operating through companies) and … Continue Reading