Grossing up

Grossing up is an important calculation in your schedule of loss to work out how much compensation you should receive after tax, so that you get the correct compensation for your net loss. If your claim for lost earnings is less than £30,000.00 you will not be taxed on it. If your lost earnings comes to more than £30,000.00, the amount in excess of £30,000.00 will be taxed as income.To ensure that you are not put at a disadvantage by this, the ET will “gross up” any compensation payment that is over £30,000. This is done by adding the amount of tax deductible money back on to your compensation, taking into account your personal tax allowance and tax banding. See How to gross up your schedule of lossMitigation Statement Template,  Checklist for claiming compensation in the Employment Tribunal, The Basic Award, The Compensatory Award, How to prepare your schedule of loss for the Employment Tribunal, Schedule of loss spreadsheet for unfair dismissal claims, Schedule of loss spreadsheet for discrimination claims