MARTIN CASE HIGHLIGHTS BONUS ISSUES

摘要

An employee received a signing-on bonus of ￡250,000 that was immediately subjected to PAYE and NICs. A condition of the employment contract was that, if he left within five years, he would have to repay part of the bonus determined by a formula related to his length of service. When he did leave within five years and repaid ￡162,500, he claimed tax relief on this sum. HMRC predictably denied this, and so the case of Julian Martin [2013] UKFTT 040 (TC) was heard. Without tax relief Mr Martin was worse off than if he had not received the bonus at all.