Bonus tax to be paid
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by Sally Nash • The Transport and General Workers Union is warning members to declare bonus payments to the Inland Revenue, following the collapse of an Industrial Tribunal case on unfair dismissal.
The warning comes after driver Darren Manley appeared at a tribunal, claiming unfair dismissal, unlawful deduction of wages and damages for breach of contract against Bradfordbased SOS Recovery.
The tribunal heard that Manley had been paid monthly bonuses of between ,£30-40 in cash for two years but no tax had been paid. One of the company's partners, Barry Roper, admitted that SOS Recovery had attempted to "defraud the Inland Revenue".
According to the tribunal, Manley "knew the consequences of being paid in cash". It ruled that Manley's employment contract was illegal because of the fail Lire to pay tax on bonuses and ruled against his claims.
A written decision on the case spells out the verdict: "It was the decision of the tribunal that the applicant's contract of employment was void, as the contract was being performed TGWU regional officer Maurice Britton says he was surprised by the result, particularly as "we had a brilliant case". He says it is the first time he has experienced "intent to deceive the Inland Revenue" as a defence in a tribunal case like this.
Ile warns other members to be aware of employers who are failing to pay tax on bonuses. "But how are my members expected to know what is going through the books and what is not?" he asks.
The TGWU is now looking ro appeal against the case.