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Employment Law

Legal guidance - compliance - software

26 MAY 2015

Timothy James Consulting Ltd v Wilton UKEAT/0082/14; (2015) EMPLR 028

Timothy James Consulting Ltd v Wilton UKEAT/0082/14; (2015) EMPLR 028
5 March 2015

Employment Appeal Tribunal (EAT)

Singh J

Compensation for unlawful discrimination normally includes an award for injury to feelings. Such awards are not taxable.

A tribunal upheld W’s complaint of unlawful sexual harassment. The compensation included an award of £10,000 for injury to feelings. The tribunal grossed this up to take account of tax.

The EAT held this was wrong. Awards for injury to feelings are not subject to tax and so that part of the compensation should not have been grossed up.

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