Follow us on Twitter

Gratuity Payment - for retiring Clerk

0 votes
Good morning

Our clerk is retiring (pensionable age).  A gratuity payment is due as it was in her contract before the legislation changed  NALC solicitors confirm it should be paid.  My question is I can  not ascertain looking on HMRC if this is taxable.  Ha anybody paid a gratuity payment of late and can they advise.

For actual payment,  what calculation did you use?  NALC are stating x 3.75% final salary.  The formula used on Income tax act is different.

asked by (890 points)

1 Answer

0 votes
Best answer

Morning Ann. You may find the information you need by Googling EIM65870, which sets out all the different scenarios and qualifying dates. If all else fails, tax it through the payroll, then the beneficiary may reclaim any overpaid tax.

answered by (32.8k points)
selected by

Welcome to Town & Parish Councillor Q&A, where you can ask questions and receive answers from other members of the community. All genuine questions and answers are welcome. Follow us on Twitter to see the latest questions as they are asked - click on the image button above or follow @TownCouncilQA. Posts from new members may be delayed as we are unfortunately obliged to check each one for spam. Spammers will be blacklisted.

You may find the following links useful:

We have a privacy policy and a cookie policy.

Google Analytics Alternative