Fair Bargain / Legal fees paid by employer

[lippy]

Thanks for your comments. I have to say had I realised it would cause me all this grief I would have just taken them to Court and then they would almost certainly have lost and had to pay the fees via the Court. There would have been no tax implication in this scenario.

I had no idea I would be taxed on the legal fees for settling out of Court. It has taken a big chunk out of the actual settlement which was correctly taxed.

Awful advice from solicitors led to this.

I have had legal advice from Counsel saying that it should be treated as a 'fair bargain' and not be taxed, I asked on here to see if anyone else had any knowledge of this sort of situation.