PAYE74020 - PAYE operation: lump sum termination payments: payment made into court following arbitration
In this context, `Court' is to be taken to cover a stakeholder
or solicitors acting on behalf of an employer or employee.
An employer may make payment(s) into Court if a former
employee or office holder takes a compensation claim there for
arbitration. The Court will then make any appropriate termination
payment to the taxpayer.
When the Court makes payment
- Ensure the taxpayer is brought within SA, if an SA taxpayer record does not already exist
- Write to the taxpayer advising him or her that
- Tax is due on the payment by the Court
- He or she should include the payment in his or her self assessment for the year in which the payment was received
- Credit for PAYE deductions (if PAYE was operated) may be claimed in the self assessment
