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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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.