A company takes on 3 employees.
Their previous employer sues then for breach of protective covenant
The new employer pays the legal fees
What's the tax treatment
Replies (4)
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The tax treatment is the same as it would have been if the company had bought the employee his weekly groceries.
Which taxes
P11D would involve Class 1A (i know we are told it's not a tax but it is). P11D would include any VAT from legal team.
Is VAT recoverable ???? Another tax issue.
Then: is the cost allowable for CT?
Are these the questions?