What is the difference between loss of office pay and redundance pay ?
Loss of office pay is allowable expense but allowance for redundancy pay is limited to3* statutory limit ..
wht is the difference b/w two ?
Ask the Tutor ACCA TX-UK
Loss of office
At TX-UK the syllabus does not include the taxability of termination payments on the employee which is where the distinction between the types of payment is required. At TX-UK you simply need to know that such payments are allowable expenses for the employer in determining their taxable profit.
The limitation of the allowable deduction on redundancy payments to 3 times the statutory redundancy payment is ONLY applicable when the employer business CEASES trading.
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