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Is My Accident at Work Compensation Taxable? – Get Free Advice

Do I Have to Pay Tax on the Interest I Get on Personal Injury Payments?

When it comes to any tax that may be payable on the interest you receive on a personal injury payment, this is calculated and deducted at source. In short, any tax due would be deducted prior to a payment being made. An example being as follows:

Should you have suffered an injury on January 1^st, 2013 and you received a final settlement of £20,650 on July 14^th, 2014 which included £650 interest on the £20,000 damages you received, there would be no tax to pay on the full £20,650. The reason being that the interest would already have been deducted at source and the £650 would have been the sum accrued between the date you were injured to the time you were awarded your final personal injury compensation settlement

However, there may be a further delay in receiving your compensation even if your personal injury claim is settled and an amount is agreed. Should this be the case, interest that may be added by the “payer” is subject to tax. The reason being that the interest is often paid without any tax having been deducted and as such, you would have to declare the “extra” interest when filing your annual tax return. An example being as follows:

Should you have been awarded £20,650 on July 14^th, 2014 but you did not receive your personal injury compensation until January 14^th, 2015 an extra £206.50 would be added to your final settlement which is the amount accrued during the extra 6 months you had to wait. As such, it would be necessary to declare the sum of £206,50 on your tax return

Working with a solicitor when seeking accident at work compensation offers many benefits with one of them being that a lawyer who boasts vast experience in this type of case, would be able to advise you when it comes to any tax liabilities you may encounter on the “extra” interest that may accrue on the money you are awarded in a successful claim.

Investing Your Personal Injury Compensation and the Tax Liabilities

Should you decide to invest the amount of personal injury compensation you are awarded in a successful claim, the interest you receive on your investment would be taxable. If you are on the basic rate of tax, the amount of tax due is typically taxed at the source, but if you fill out a self-assessment return, you would need to declare the amount to HMRC yourself.

What Can Be Included in a Personal Injury Claim?

There are specific things which can be included in a personal injury claim which come under the titles of “general damages” and “special damages”. General damages are awarded based on the severity of your injuries and how your future life and well-being is impacted. Another factor that would be taken into consideration, is whether you would be able to work again or whether you need o have a lot of time off in order to recover.

Special damages, on the other hand are simpler to calculate as they are based on “actual” costs and expenses you had to pay out as a result of having been injured. When seeking personal injury compensation, it is essential that you are able to provide proof of the expenses you incurred in the form of receipts which would be required when calculating the “special damages” you receive in a successful claim. Without the necessary receipts, it would be hard to prove the expenses and other costs you incurred.

Is It Worth Suing an Employer For an Accident at Work Injury?

All employees are entitled to seek compensation for injuries sustained in the workplace, providing they can prove the incident occurred through no fault of their own. With this said, an employer could be held partly responsible for your injuries which is why it is always worth seeking legal advice from an experienced accident at work lawyer. There are various situations that a lawyer who specialises in personal injury claims would be able to investigate which includes “vicarious liability” and “contributory negligence”.

It is always worth remembering that employers throughout the UK are legally obliged to hold liability insurance and the policy must be current. The cover must also be provided by a “recognised” insurance provider. Failure to have the correct level of insurance in place would result in your employer receiving heavy fines from the enforcing authority.

With this said, the amount of tax free personal injury compensation you would be awarded is paid through your employer’s insurers whether they choose to settle out of court because your claim in undisputed, or they dispute your case and it goes to court.

Do I Have Workers Rights After an Accident at Work?

Your worker’s rights are protected even if you have an accident at work and would like to make a personal injury claim against your employer. These rights are as follows:

To seek compensation for workplace injuries sustained or because you developed a work-related health issue
Even if you seek compensation by filing a personal injury claim, your position and job within a business/company is secure

Should your employer try to prevent you from seeking compensation and threatens you with redundancy when they discover you are planning to file a case against them, you should seek legal advice from a lawyer and you should never resign because you feel under duress to do so without first speaking to a solicitor. Your employer’s behaviour towards you could entitle you to file further legal action out against them.

Does My Employer Have Legal Responsibilities in the Workplace?

Many laws exist in the UK that are set in place to ensure that employees and workers are kept as safe as possible while they are in employment. The Health and Safety Executive regulations must be adhered to not only by your employer, but all members of staff too. Should you suffer a workplace injury because your employer failed to keep you safe from harm and injury, you have the right to make a personal injury claim against them, providing your case meets specific criteria.

Employers have a duty to do the following:

To make sure you and your work colleagues are given adequate and ongoing training to carry out jobs you are tasked to do in the workplace
To regularly carry out risk assessments and to set in place all reasonable measures to reduce the risk of harm and injury to workers/employees
To make sure that tools, equipment and other machinery is correctly maintained as per a manufacturers’ recommendations
To make sure that all members of staff are made aware of working procedures and practices
To make sure that all members of staff have access to personal protective equipment to carry out a job when needed

If an employer fails to provide any of the above or set in place necessary measures to keep employees safe from harm while they are working for them, they could be deemed liable for any injuries that you sustain in a workplace accident.

Are There Any Benefits to Working With a Solicitor on a Personal Injury Claim?

If you are considering filing a claim against an employer, you should seek legal advice from a solicitor who specialises in this type of work-related accident. A solicitor would ensure not only that you receive the right level of personal injury compensation, but that all aspects of the case which includes making you aware of any tax that may be due on the “extra” interest that has accrued from the time your case was won and an agreed sum was reached, to the time you actually received the compensation you sought.

Other benefits of having a solicitor represent you when making a personal injury claim against a negligent employer would include the following:

Once your claim has been thoroughly investigated by a solicitor and they are satisfied you have a strong case against your employer, they would agree to represent you on a No Win No Fee basis
A solicitor can use precedents to help prove your case by way of legal libraries to which they have access to
A solicitor is experienced when it comes to negotiating a fair level of compensation for you with your employer’s liability insurance providers
Should your case be complicated and your injuries be such that it could take you a long time to receive a final settlement, a solicitor would ensure you are paid interim payments in the meantime
Specialist treatment and therapies can be organised for you which could help speed up your recovery and this includes physiotherapy
A solicitor who specialises in accident at work claims would walk you through the process and would advise you on any tax liability you may have should your final settlement take longer than normal to be paid out and therefore the amount awarded accrued further interest

If you are claiming accident at work compensation from your employer because you believe the incident that left you injured could have been avoided, you should contact a lawyer who specialises in this type of work-related injury claim.

Is There a Time Limit to Claiming Accident at Work Compensation?

Following an accident at work in which you were injured, whether your injuries were minor or more severe, the statutory time limit associated with personal injury claims is detailed below:

3 years from the date of the workplace incident in which you were injured
3 years from the date you were officially diagnosed as suffering from a work-related medical condition
3 years from the date you turned 18 years of age, should the workplace accident have occurred prior to you being 18 years old

If you want to claim compensation for an accident at work injury, you should contact a lawyer sooner rather than later because it takes time to gather all the proof and evidence needed for your claim to be upheld. Waiting too long could result in you running out of time to claim accident at work compensation even if you have all the evidence required to prove your employer was negligent in their duty to keep you safe from injury in the workplace.

Can My Employer Fire Me For Claiming Accident at Work Compensation?

Your employer’s rights prevents an employer from sacking you because you are claiming accident at work compensation from them. An employer who threatens to fire you or to make you redundant for no other reason than because you are making a personal injury claim against them, would be acting illegally and as such, you would have the right to seek legal advice and to take out further legal action.

Would a Solicitor Work on a No Win No Fee Basis if I Seek Accident at Work Compensation?

As previously mentioned, once a solicitor who specialises in personal injury claims is satisfied that your claim is valid and that your case against a negligent employer is strong, they would offer to work with you without requesting an upfront payment in order to do so. You would be asked to sign a No Win No Fee agreement which is referred to as a Conditional Fee Agreement. This is a legally binding contract that is drawn up between you and the firm of solicitors. It lays out all the details relating to the Terms and Conditions of the contract and it also specifies the amount you would have to pay the solicitor which is known as a “success fee”.

The “success fee” is the percentage you agreed to pay for legal representation provided by a firm of lawyers but this only becomes payable when you are awarded the compensation you seek. The percentage is then deducted from the money you receive. Should you lose your claim, the “success fee” is waived because you entered into a No Win No Fee agreement with the firm of lawyers. In short, you only pay the solicitor once your case has been settled whether by a judge or through negotiations with your employer’s liability insurance providers.

The amount you are awarded is handled by the firm of solicitors who represented you and they would advise you on whether there is any tax to be paid on the interest that has accrued should the time it takes for you to receive a final settlement and the date your claim was settled, have taken longer. With this said, there would be no interest to be paid on the “actual” settlement you are awarded or the initial interest that may have accrued. The only time that interest would need to be included on a tax return, is when there is “extra” interest paid on the initial amount you receive in your accident at work compensation.

Informative Links

If you would like more in-depth information on tax liabilities on the personal injury compensation you may be awarded following an accident at work, the following link provides useful reading:

Further information regarding tax liabilities on personal injury compensation

To find out more about tax liabilities on personal injury compensation that you invest, the following link provides essential reading:

More information about investing your personal injury compensation and tax liabilities

What Compensation Would I Get For a Crushed Foot Suffered at Work?

Would My Employer Be Liable for My Crushed Foot Injury?

For your crushed foot claim to be valid, you would need to provide enough evidence that the workplace accident could have been avoided if your employer had not failed in their duty to keep you safe from harm while in their employment. The incident may have been caused by a workmate, in which case, your employer could still be deemed liable because they are responsible for the actions of all employees in the workplace.

Even if you believe you may be partly responsible for causing the workplace accident that resulted in you suffering a crushed foot, you should still seek legal advice because a solicitor may deem that your employer could be held partly liable. In this instance, the liability would be split between you and your employer with the amount of crushed foot compensation you receive reflecting your level of responsibility for the injury you sustained.

What Evidence is Needed to Prove a Crushed Foot at Work Claim?

The more proof you can provide that your injury was sustained in the workplace through no fault of your own or because you were partly responsible, the stronger your case would be against your employer and the more chance you would have of working with a solicitor on a No Win No Fee basis. The evidence required to support your crushed foot claim would include the following:

Photographs of where the workplace accident happened
CCTV footage of the incident if available
Photographs of the injury you sustained, preferably before you receive any treatment if possible
Contact details of all the people who witnessed or were involved in the workplace accident that left you with a crushed foot
A medical report of your injury which should be as detailed as possible this includes X-rays and other diagnostic tests that are carried out when you are taken to the Accident and Emergency department of a hospital
The official record of the workplace accident, whether this is a copy of the report sent to RIDDOR, the record of the incident as detailed in the Accident Report Book or the letter or personal email that was sent to your employer

How to Start Your Crushed Foot Claim Against an Employer?

If you are thinking about filing a crushed foot claim against your employer but are unsure on how to proceed, a solicitor who specialises in this type of workplace injury case would be able to provide essential legal advice on how start your claim. Claims for workplace injury compensation can be complex legal processes that are pitted with legal loop-holes. There is a tremendous amount of “red-tape” involved in accident at work claims and as such, it is best to seek the aid of an experience solicitor who has vast experience in negotiating this type of complicated legal process to avoid losing out on the compensation you may rightly deserve.

A solicitor would assess the validity of your crushed foot claim against an employer and once they establish your case to be strong, they would typically ask you to enter into a No Win No Fee agreement with their firm of lawyers. This is also referred to as a Conditional Fee Agreement which is a legally binding contract that is signed by both you and the firm of solicitors who are going to represent you in your crushed foot claim.

How Much Compensation Could I Receive for a Crushed Foot at Work Injury?

The compensation you may be awarded in a crushed foot claim against an employer depends on the severity of your injury as well as how your life has been impacted. Your ability to work ever again would also be factored into the amount of crushed foot compensation you would receive. With this said, you would be awarded both general damages and special damages should your claim be upheld.

General damages are awarded for the pain and suffering you had to endure which includes loss of amenity
Special damages are awarded for all your out of pocket expenses which you incurred having suffered a crushed foot in the workplace

As a guideline, the Judicial College has published the level of compensation you may receive having suffered a crushed foot in the workplace. These amounts are listed below:

Fracture to the metatarsal, ruptured ligaments, puncture wounds, you could receive up to £12,050
Misplaced metatarsal fractures which results in a deformity, you could be awarded between £12,050 and £21,910
Fractures to both feet with the risk of ongoing treatment and surgery, you could receive between £21,050 and £34,370
Fractures to both heels, fractures to both feet, severe injury to one foot which results in a substantial disability, you could be awarded between £36,800 and £51,410
Permanent damage together with severe pain, amputation of the forefoot resulting in permanent disability, you may be awarded between £71,620 and £96,150
Amputation of one foot, you may be awarded between £73,620 and £96,150
Amputation of both feet, you may receive between £148,540 and £176,660

The above crushed foot compensation amounts are provided as a guideline to the amount you may receive for an injury you sustained in the workplace, bearing in mind that all personal injury claims are treated as being unique. In short, the amount of crushed foot compensation you could be awarded if your claim is successful, may be more or less that the amounts indicated.

What Can Be Included in a Crushed Foot at Work Claim?

You would be awarded “general damages” and “special damages” in a successful crushed foot at work claim against your employer, bearing in mind that it would be your employer’s liability insurance provider who would handle your case and negotiate a settlement.

General damages are awarded for the pain, suffering and loss of amenity you endured as a result of your workplace injuries
Special damages are awarded to compensation you for all your out of pocket outgoings which you incurred as a result of having been injured in a workplace accident. This includes your travel and medical expenses as well as any other payments to had to deal with. You would need to provide receipts for all the expenses you incurred which would be factored into the amount of special damages you are awarded

Should your crushed foot injury be such that it prevents you from working again, this would be factored into the amount of compensation you are awarded in special damages. A solicitor working on your behalf would ensure that you receive a level of crushed foot compensation you would be entitled to having been involved in a serious accident in the workplace.

Should I Sue My Employer For a Crushed Foot Injury?

A lot of employees worry that having been injured in a workplace accident, they should not seek compensation from an employer for fear of losing their position in a business. Another worry is that by filing a crushed foot claim, it would put an employer under undue financial pressure. However, all employers must abide by the law which states they must hold valid liability insurance which covers them for such eventualities as employees and other people being injured in the workplace.

As such, it is not your employer who would have to pay the compensation you may be awarded, but their liability insurance provider who would handle your claim and deal with the compensation you seek for the crushed foot injury you sustained in the workplace.

Providing your employer does not dispute your claim, there is a high possibility that their insurance provider would negotiate an “out of court” settlement with the solicitor you choose to represent you in a crushed foot claim. Should your employer dispute your claim, a solicitor would investigate the “reasons” why they do not accept liability and to establish that they could be held responsible for the crushed foot injury you sustained while you were in their employment.

What are My Workers Rights Following a Crushed Foot Injury?

You have specific rights as an employee which means that should you be involved in any sort of accident at work that leaves you with an injury such as a crushed foot, you would be entitled to the following:

Seek compensation from your employer for the injury you sustained through no fault of your own providing the incident occurred in the last 3 years through no fault of your own
That your job is “safe” if you file a crushed foot at work claim against an employer

If your employer makes your working life difficult because you seek compensation from them or they threaten you in any way which includes saying that you may be made redundant if you file a personal injury claim against them, your employer would be acting illegally. As such, you should seek legal advice from a specialist employment lawyer who would provide essential information on whether this would entitle you to take further legal action out against your employer.

What Are My Employer’s Responsibilities in the Workplace?

Employers are legally bound to keep you safe from injury and harm while you are in their employer which they must do by putting in place all “reasonable” measures to reduce the risk of workplace accidents happening. Your employer must abide by all the legislation and laws that are set in place to keep employees and workers safe and if they fail to do so which results in you being injured in a workplace accident, they would be deemed liable for the injuries you sustain.

Your employer’s responsibilities in the workplace include the following:

You are given adequate and appropriate training to carry out the jobs you are tasked to do and that the training should be ongoing
That the tools, equipment and machinery you use in the course of your daily job, are kept in good condition and correctly serviced/maintained
That risk assessments to identify hazards in the workplace are regularly carried out and to set in place reasonable measures to reduce the risk of you being injured or suffering any sort of harm
That you have access to working practices and procedures which must be followed
That the correct personal protective equipment is made available to you when needed and to ensure the equipment is correctly stored and maintained in good condition

What Are The Benefits of Working With a Solicitor on a Crushed Foot at Work Claim?

Accident at work claims can be complicated legal processes which use a lot of legal jargon and procedures that must be adhered to at all times. If you are unfamiliar with the legal process, it is all too easy to fall into the many legal pitfalls that exist. This could mean that your crushed foot claim against a negligent employer is rejected from the outset by an insurance provider. Working with a specialist accident at work lawyer reduces the risk of this occurring because a solicitor with vast experience of the legal process involved would investigate your claim, assess whether your case would be successful and when they are satisfied this to be the case, the firm of solicitors you contact would typically offer to represent you on a No Win No Fee basis.

The benefits and advantages of having a solicitor represent you on a crushed foot claim against a negligent employer, includes the following:

The solicitor would contact your employer and their liability insurance providers by letter informing them of your intentions to seek compensation for the crushed foot injury you sustained in the workplace
The solicitor would advise you on what evidence is required to validate and prove your crushed foot claim
The solicitor would arrange for you to be examined by an independent medical professional who would provide a detailed report of the workplace injuries you sustained and how your life is impacted by your injuries. This report is key to the amount of compensation you may be awarded in a successful crushed foot claim
An accident at work lawyer can reference legal libraries and base your claim on “precedents”
Should your employer’s liability insurance provider fail to respond to an initial letter in a timely manner, the solicitor would begin court proceedings against them
If your employer admits liability for the injury you sustained, the solicitor would negotiate a fair and acceptable level of crushed foot compensation for you
A solicitor would arrange for you to receive ongoing treatment, therapies and rehabilitation

Is There a Time Limit to Filing a Crushed Foot Claim Against an Employer?

There is a strict statutory time limit to filing a crushed foot claim against your employer which is detailed below:

3 years from the date you were involved in a workplace accident that resulted in you sustaining a crushed foot injury
3 years from your 18^th birthday, should the accident at work that left you injured have occurred prior to you being 18 years of age

Can My Employer Fire Me For Filing a Crushed Foot Claim Against Them?

You cannot lose your job because you seek compensation for a crushed foot injury that you sustained in the workplace. Your right to file an accident at work claim against an employer prevents you from being sacked for doing so. Should your employer fire you without any other good and valid reason, they could be breaking the law which could entitle you to take further legal action out against them which includes filing an “unfair dismissal” claim against your employer.

Would a Solicitor Be Willing To Work on a No Win No Fee Basis on My Crushed Foot Claim?

Once a solicitor is satisfied that you have a strong crushed foot claim and that your employer is liable for the injuries you sustained in the workplace, the firm of lawyers you contact would agree to represent you and would do so by signing a No Win No Fee agreement. In short, once you enter into the Conditional Fee Agreement (CFA), the solicitor would begin working on your case without the need of requesting that you pay them an upfront fee. There would be no ongoing fees to find as your claim progresses either which is one of the great financial advantages of working with a solicitor who specialises in accident at work claims of this nature.

Should you lose your claim, you would not have to pay the “success fee” that is detailed in the CFA you signed because this is only payable when your crushed foot claim is upheld and you are awarded the compensation you seek with the amount due to the solicitor being deducted from the amount you are awarded.

Informative Links

To find out more about your employer’s responsibility to have liability insurance in place, please follow the link below:

More about the law governing employer liability insurance

If you would like to know more about claiming compensation from an employer, please follow the link below:

More about claiming compensation following a workplace accident