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10 September 2013
Issue: 4419 / Categories: Forum & Feedback , Income Tax

A solicitor assists employees in recovering unpaid holiday pay from current or former employers on a no win/no fee basis. He recovers his fee from any payment made

A client of ours is a solicitor and has recently started a new service helping employees claim holiday pay from their employers who for one reason or another have failed to make the due holiday payment.

The solicitor charges his clients on a no win/no fee basis. Once his work is completed and any unpaid holiday pay has been recovered from the employer this is mandated to be paid to his firm under the arrangement he has with his client. The employer therefore pays the solicitor who takes a percentage fee from the holiday pay.

Is the solicitor obliged to deduct PAYE before he pays the net of commission amount to his client? And if so can he first offset his commission?

Does it make any difference if the employee has already left the employment and finally out of interest should the...

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