Subject:
"Equal pay settlements. Capital or income?"
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nevip
welfare rights adviser, sefton metropolitan borough council, liverpool. Member since 22nd Jan 2004
Equal pay settlements. Capital or income? Fri 09-Mar-07 10:52 AM
A colleague has asked me to post this. All help would be appreciated.
Our council is intending to class the pay arrears paid to employees under the equal pay settlements as compensation payments based on how long someone has worked for the Council. They're non-taxable. One off compensation payments could be treated as capital. The Inland Revenue is implying that they will treat them as income for the 2006-07 period. Does anyone else have any experience of this? Housing Benefit is unsure as to how they will treat them.
