What are golden hellos?
jon
April 01, 2010
employee, Employment, golden hello, HM Revenue and Customs, HMRC, Peter Shilton, signing-on fee
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Having talked about golden handshakes I ought to mention the “golden hello”, which is a payment made to a future director or employee. It is just possible (only just!)that a payment received from someone other than the new employer – a third party – could be construed as non-taxable. Where a lump sum payment is made to a prospective new employee, it will be taxed as advance pay for future services unless it represents compensation for some right or asset given up on taking up the employment. An example going back to the 1950s was where an … Continue Reading
