Home For accounting professionals General accounting discussion

Compensation Claim Costs

T.C.T.C. Experienced MentorRegistered, Tutor Posts: 1,448
If a client has been taken to court for an employment tribunal and lost the case, can he claim the expenses for the court and solicitor fees and also the payment made to the claimant? Advice appreciated on this one!!


  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Come on you clever people - someone must know!
  • sloshedsloshed Well-Known Registered Posts: 100
    I would say they would be allowable as it has been incurred within the trade. (If he did not have the trade then he would not have employed them).

    However I seem to remember, from when studying ATT, that there may a restriction if the trade is not carrying on.

    Hope that is a starting point, maybe be worth looking at the manuals on HMRC website.
  • payrollpropayrollpro Trusted Regular Hampshire/SurreyRegistered, Working Together with HMRC, FMAAT Posts: 423
    I agree with sloshed, any award made by the tribunals and any costs incurred as a result, in my view, are the same as where the business incurs cost to defend any other claim made against it. The only exception is where a statutory penalty is imposed, for example if the client had failed to comply with an order of the tribunal and had been fined as a result.

    We cannot offset such penalties against profits but the award and legal fees are ordinary costs of business.

    Mind you I cannot find anything in the HMRC manuals covering it.
  • sabinanelkesabinanelke Just Joined Registered Posts: 4

    would that be of any support for payrollpro's answer:

  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Thank you!!!
Sign In or Register to comment.