Upper Tribunal decides on correct treatment of bonus clawback payments

The Upper Tribunal ruling in Martin v Revenue and Customs Commissioners concerning the tax treatment of bonus clawback payments raised two principal issues. First, whether a partial repayment of a Signing Bonus under a clawback clause reduced the employee’s earnings in the year the bonus was received. Second, whether the repayment constituted negative earnings in the year it was made which gave rise to a right to deduct under s128 ITA. 

Akash Nawbatt discussed the case with Nicola Laver from Lexis Nexis’ News Analysis in October 2014.

To read the full interview, please click here. Back to articles

Additional Information