After leaving a company and starting the process of starting a new company (established investment funding and U.K. Limited company), my ex-employer started a sequence of legal allegations of breach of contract, trademark infringement etc etc, along with a variety of demands. At this time, there was no trade or attempted trade, no VAT registration of the ltd company, and I was supporting myself from savings. Ultimately, agreements were reached (no acceptance of breach on my part), but I then took employment with another company. Are the costs I incurred (over £10k) tax deductible from my personal taxation? The ltd company still exists, but has no role in my current employment.
Thanks for any guidance.
Paul.
Replies (5)
Please login or register to join the discussion.
A bit too late now, but "legal expenses" insurance cover, offered by some insurers in conjunction with home and/or motor insurance, can in principle provide some assistance for a relatively small premium sum: check terms and conditions, and ask for specifics when taking it out.
The last time I had cause to check, the policy I had certainly covered issues concerning employment.