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?
- Employee leaving mid month and Payroll Manager 1,225 26
- Are there any auto-enrolment engagement letter templates? 1,452 35
- Accountant let me down 608 6
- 2020 Annual Conference 160 2
- Let Property Campaign - Joint Owner Died 101 2
- Professional Clearance 1,213 29
- Client right to working papers 1,434 10
- Growth Street 161 2
- Client has two UTRS, How do you get HMRC to correct this? 236 9
- Microsoft One Drive 619 23
- SA302's - What's the deal? 497 8
- Online Back Up 286 7
- Filing a company valuation with HMRC 101 1
- Financial Advisor / Mortgage Brokering 130 1
- Vat application refused 214 1
- Professional Clearance 427 6
- Self-employed 588 14
- Past rental expenses 317 5
- Redeemable loan note - loss 106 1
- IHT400 or IHT205 - disagree with solicitor 324 3
- NHS finance professionals 631
- Auto Enrolment and Foreign employers 401
- Foreign Pension Contribution 368
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 345
- vat gross profit percentage margins 344
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 321
- Quickbooks online filing of VAT 298
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 290
- Does pension term assurance count for unused relief purposes? 248
- IFA income recognition & reporting 209