I recently employed a lawyer to help negotiate my exit from my employer whilst I was still working there.
I sucessfully received a settlement agreement with the help of my lawyer who charged me 5K for her trouble. Question is can I claim this against my tax return? I was still employed when i paid this fee.
I have received various advice from different camps and im confused.
Replies (15)
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I think you should sue your lawyer for not getting your legal fees included in your settlement.
many thanks for the response but doesn’t really answer the question ??
The answer is "no".
The general rule is that a deduction from earnings is allowed for an amount if—
(a)the employee is obliged to incur and pay it as holder of the employment, and
(b)the amount is incurred wholly, exclusively and necessarily in the performance of the duties of the employment.
I think you will struggle to meet these conditions.
There is a difference between a cost incurred in performing your work (=allowable) and a cost incurred in reaching an agreement that you no longer have to perform your work (=not allowable).
RM
The level of "entertainment", here on Aweb, is obviously especially low, at the moment.
It'll be sheep next................
HELP?
If you were not asking for help, you would not be posting a question. The "HELP" is as redundant as the exclamation marks.
But you have already got your answer well up the thread.
The rest of the posts on this thread are mere mutterings around the "virtual coffee machine", for a fair few of us posting on here A Web is the bulk of our human contact during the working day, certainly I can spend a typical Thursday/Friday working at home speaking to no one until after 5.30 p.m. when the family return. (though not today as am actually in office with other sentient beings, but only because I did not come in on Monday and Tuesday)
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