| No Tax to Pay on Compensation |
No Tax to
Pay on Compensation.
By : Matrix Jones
One of the greatest financial burdens that most people face is the
burden of taxation. There are various different types of taxes that
that people pay including income tax, corporation tax, inheritance tax,
national insurance contributions, vat etc. The list seems to go on
forever.
Today, there are other new forms of stealth tax such as road tax, fines
for speeding, fines for breaking a red light, fines for being in a box
junction, fines imposed by traffic wardens, vehicle clamping fines, Mot
charges and the list goes on.
Did you know for instance that there are people driving around in Smart
Cars with smoked glass windows monitoring for traffic offences. The
next time you see one look closely at the top of the vehicle and you
might observe a rotating camera watching you.
There are bus lanes with street cameras and cameras on buses monitoring
for offenders who illegally use the bus lane. I think the practice
still continues but we were even paying for air to inflate our vehicle
tyres.
Where do you think most of these tax revenues end up? That’s
right, in the government coffers. I could go off subject on a tangent
forever but that is for another subject area.
I would stress that I am not a qualified financial adviser and that
information in this article is merely that ie information and not
financial advice. However, the last time I checked there was no tax
liability on the compensation
you receive following a personal injury
claim.
Basically this means that whatever sum of money is finally agreed upon
for your claim is paid out in full by the insurance company. There is
no withholding of any sum from your compensation
to pay any tax
whatsoever.
I know that some solicitors have a habit of either holding onto the
full amount of your compensation
or a proportion of it pending receipt
of their own costs which is usually paid later. This however, is an
entirely different matter and one between you and your solicitor.
Therefore, if anyone handling your personal injury claim deducts or
indicate an intention to deduct any amount for tax purposes then they
would be committing a fraud against you.
It must be emphasised that if you mount a fraudulent personal injury
claim for the purposes of financial gain and/or to avoid paying taxes
then this is a serious offence.
From my experience in handling personal injury claims I gained the
distinctive impression that some people see this as a way of life and
pursue, in particular back injury claims that could be considered
fraudulent.
However, there are ways and means for detecting this type of fraud
which I have explored in the Personal
Injury Compensation Claims Guide
for DIY Claimants which you can review.
It of course remains to be seen whether this tax concession will remain
for much longer given the innovative programmes in place already to
take peoples money off them and the inherent greed factor surrounding
the subject of money.
About the author:
Matrix Jones is a graduate of the University of East Anglia and an
Associate of the Chartered Insurance Institute.He has accumulated more
than 25 years in the evaluation and settlement of personal injury
claims.
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The Publisher has strived to be as accurate and complete as possible in
the creation of this website, notwithstanding the fact that he does not
warrant or represent at any time that the contents within are accurate
due to the rapidly changing nature of the Internet.
This site
is a common sense guide to No Tax to Pay on Compensation. In practical
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income made. Readers are cautioned to reply on their own judgment about
their individual circumstances to act accordingly.
This site
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