I was awarded £162k for injury to feelings, past and future loss of earnings after facing disability discrimination and losing my job.
The employment tribunal instructed my former employer to pay me a grossed up figure of £232k to account for income taxes I would need to pay.
My issue is that I’ve also landed a student loan repayment bill of nearly £17,000 after completing my self assessment tax return. This can’t be right? Are compensation/termination payments on account of discrimination not exempted from student loan deductions?
When employment tribunals award payments over a certain amount, they gross up the award to account for tax. Say for example someone was awarded compensation of £160,000, but the Employment tribunal grossed the figure up to £232,000 to account for tax. Would you declare the compensation award figure of £160,000 on the self-assessment tax return, or the grossed up figure of £232,000? Thanks