Asked for my opinion on this by one of our internal auditors (mad fool!!)
Some years ago, a lady recevies a payment from the United Reformed Church following her husband’s death. No problem, she does declare it and for years we treat it as an Occ Pen. On subsequent review forms she clarified that this was an Ex Gratia payment in lieu of a pension. The payment slips also show a deduction for tax.
However in 2004 this was revised and treated as a voluntary payment and £20.00 was disregarded from the amount. In November 2005 that was changed to a full disregard.
My question is this – should this be treated as though it was an Occ Pen since income tax is deducted from the payment or should it have been treated as a voluntary / charitable payment? My thought is that it is analagous to an Occ Pen and is taken fully into account but thought I would canvass the opinion of others more knowledgeable than I.
Do I know what I'm doing? The jury's out on that........................
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