In Keith Murphy v HMRC [2021] UKUT152, the Upper Tribunal (UT) treated the costs of an employment claim settled by the employer as non-taxable. They were not earnings derived from the taxpayers’ employment, they were necessary costs of making the claim. This decision was overturned upon appeal to the Court of Appeal.

Mr Murphy was a police officer with the Metropolitan Police Service (the Met).

The Upper Tribunal (UT) allowed the appeal granting deductions for the disputed costs.

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External link

UT: Keith Murphy v HMRC [2021] UKUT152 

FTT: Keith Murphy v HMRC [2020] TC7936


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