Market leading insight for tax experts
View online issue

HMRC v J Martin

In HMRC v J Martin [2014] UKUT 0429 (22 September 2014) the Upper Tribunal found that a bonus repayment by an employee constituted ‘negative earnings’.

Mr Martin was an employee of JLT Risk Solutions (JLT) when the company decided that he should be induced to enter into a new employment contract which would include a mechanism to tie him in. This was achieved with the payment of a £250 000 bonus on entering into the new contract together with an obligation to make repayment in certain cases of termination of employment – on a time apportioned basis over a five year period. The bonus was treated as an emolument subject to PAYE and NIC so that Mr Martin received a net sum of £147 500.

Mr Martin resigned from the company a few months later becoming liable to the sum of £162 500.

The first issue was whether the...

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.