Are Employee's Legal Fees Allowable?

Employee Spent £2,000 Legal Costs for Redundancy Settlement Agreement from Own Funds. Tax Position?

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Employee was made redundant on mutually agreeable terms.

The employer and employee used their own solicitors in drawing up a a legally binding Redundancy Settlement Agreement, which included a restrictive covenant.

Employer paid their own solicitor an unknown amount and employee paid his own solicitor £2,000 legal costs for drawing up the Redundancy Agreement.

After doing some research, I cannot see there is any personal tax deduction for the £2,000 paid by the employee out of their own pocket. Is this correct.

I assume it must be correct because the expenditure was not incurred in the actual performance of the employment.

 

 

 

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By bernard michael
17th Aug 2018 14:04

You are correct

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Replying to bernard michael:
By penelope pitstop
17th Aug 2018 14:07

Thanks. I thought so, but just wanted to confirm that I had not overlooked some obscure loophole/concession/allowance.
Thanks for your response.

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