Net or Gross Pay?
Client worked for limited company and was paid £2k per month 2004/05 to 2007/08. He included this in his self-employed income.
Following a wages inspection, the Inspector refused the "employer" company any offset of the D1 tax paid by our client against the employer company's PAYE liability. (In other words, the Inspector's applying Demibourne treatment). That leaves our client eligible to reclaim D1 tax and class 4 NI paid on that income, given that the company are now liable.
Last time I had a similar case I remember treating the (say) £2k as net pay. But I'm receiving general hints by the (DPA-bound) Inspector's staff that I should treat it as gross pay. Can anyone please tell me which? I've been scanning through the Income Tax (PAYE) (Amendment) Regs 2008 - the legislation laid to overcome Demibourne - to look for any changes that might dictate that pay deemed to be employment income should nowadays be treated as gross (even though the Inspector has found a reason not to apply a Demibourne-like direction in this particular case).
£2k per month net or gross?
- I do not love you 297 5
- What are you doing now 31 Jan is past? 168 2
- Limited Company 244 4
- Gift of FHL - subsequent PPR not denied? 188 1
- Love is in the air 771 10
- Stamp Duty 343 5
- HP agreement in Directors name but payments under company 751 19
- Another Sneaky Tax Hike! 912 8
- Personal Pension Relief in the Tax Code 420 5
- Paying Son 821 19
- CGT on lost shares/scam 408 5
- Sage Instant Accounts Complete De-install problem 286 10
- Auto enrolment confusion 2,079 47
- Setting up a practice 671 5
- Very large share capital by mistake 645 7
- VAT refund if only output tax on first claim 573 4
- 24 month rule and expenses 506 1
- Physiotherapist and vat and agency work ( one for Les Howard???) 249 4
- I am 34 years old, am I too old to start a career in Accounting ? which is the best way to pursue it 1,878 21
- Incorporation of gp practise 479 1
- Foreign domicile status 324
- DTA tie-breaker issue 307
- Tax Implicatins on a Directors Loan 306
- CGT for NOn UK residents 286
- Employer's pension contribution - need to be PAYE registered? 284
- What are the tax implications of overseas sales through a UK based company? 263
- profit or loss on furnishings and deed of trust 250
- Apprenticeship Levy 248
- Discretionary payment to sick employee 241
- Tenants in Common - Actual % split not written down 236