Thanks go to Taxwriter Ltd's Rebecca Cave, who alerted me to the recent outcome of SpC 734 A v Revenue and Customs Commissioners.

The matter began as a dispute of unfair dismissal before an employment tribunal.

This resulted in a £25,000 compensation payment to the aggrieved former employee - who then insisted to the taxman that the majority of the cash was for damage to his reputation, and was therefore unconnected to the termination of his job.

The Revenue, however, decided that the compensation was received directly in connection with the dismissal, except £10,000 for injury to feelings.

The fact that the individual had worked as a banker, prompted a stunned Rebecca to ask: 'Bankers have feelings?'.

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