# Holiday Compensation Settlement



## Alanred (4 mo ago)

Hello,
First post, be gentle 
I am looking to find out if the Uber Holiday Compensation Settlement is taxable, i'm in Manchester uk.

Thanks


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## elelegido (Sep 24, 2014)

_A Settlement Agreement allows for a clean break of the employment relationship where you as the employee agrees to waive your right to bring claims in return for an agreed sum, or compensation. Generally speaking, your employer can pay the first £30,000 compensation for the Settlement Agreement tax free, but this will not apply to all payments. Tax on Settlement Agreement differs according to a range of considerations. 

-But-

Very often, you will have holiday owing to you when your employment ends. Payments made in lieu of holiday are taxable._

If I were you I would phone the Self Assessment Helpline at HMRC. They're (usually) pretty helpful.


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