Tax Liable on Personal Injury Award

[jryan]

Hi,

I have a friend who is due a personal injury award from his employer in the coming month. What are the tax implications for someone who receives such an award? The award will include almost a years salary plus additional compensation for medical issues encountered.

He would have been off work for a considerable period of time on social welfare.

Thanks,
John

 

[lyonsie]

I would have thought that all tax, levies etc would be paid by the time your friend receives this award.

I am in a similar predicament myself and never thought of the tax implications on settlement as well as all the other ones in my query.


Location: Co. Cork
Posts: 320
Retired due to injury at work
I was assaulted at work nearly 8 years ago and I am claiming for loss of pay, personal injury etc. It is coming close to having a court date and I am wondering what happens when I get awarded for my claim?

I am in receipt of pension (very small, as was only in service for 7 years when incident took place), social welfare (illness benefit) and luckily I had an income continuance policy which brings my pay up to 75% of what my pay should be.

What happens to social welfare and income continuance when I get compensated? I'm sure I have to inform them! The insurance company know I have a case pending, so I'm sure are waiting in the background for their money back.... Do social welfare do the same?

I'm sure my legal team can answer these questions but I would like a 'heads up' on this before I meet with Barrister(s) for the first time, tomorrow!

Advice and information please.

By the way, didn't get to meet Barrister yet due to family bereavement.