legal fees incurred in termination of employment

employee has incurred significant legal fees

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employee has incurred significant legal fees in contesting his termination of employment on the grounds that it was constructive dismissal - if as part of the compromise agreement the employer agrees to fund or reimburse the employees legal fees is the cost taxable on the employee tax deductible for the employer?

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By Accountant A
23rd Apr 2019 11:38

I vote no (or rather probably not, subject to facts) and yes.

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By paul.benny
23rd Apr 2019 13:11

To maximise prospect of costs being allowable, have invoice addressed to employer and settled directly, rather than reimbursing the employee. This will also allow for recovery of the VAT.

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Replying to paul.benny:
Pile of Stones
By Beach Accountancy
23rd Apr 2019 15:01

This is what we used to ask for when I worked in industry

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By nick farrow
23rd Apr 2019 15:04

gt thx guys

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