The client has taken his previous employer to an employment tribunal over unfair dismissal and unpaid wages for work done in 2016-17. It is not clear yet whether an agreement will be reached out of court and what elements will constitute the settlement; however he is likely to receive an amount for unpaid wages. I am trying to determine in what year the back payment would be assessed. I believe it would be taxed in the year when he was entitled to earnings rather than the date of receipt.
Would someone kindly confirm this?