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?
- Now Scotland has voted "No", when does England get to vote? 1,085 55
- Is it more beneficial to be a Ltd company? 148 3
- Do I need a 13digit tax ref for a ct600 176 4
- Cash injection by shareholder 61 2
- Any Scottish members out there? 11,457 424
- Treatment of goodwill in Consolidation 258 7
- How to pursue fraudulent trading 282 4
- PRR 199 11
- corp tax software 340 7
- Pension Contributions Relief 436 14
- Is there an expert in Excel out there? 456 7
- Which tax box 178 2
- How to change reconciliation status of bank account in Sage 50 103 3
- how to start a career in accounting at 34? 221 3
- Underpaid Tax Options on SE 201 6
- References for clients 193 2
- Sole Trader - Working from home claims 145 2
- incorrect PAYE statements 107 2
- What accounting software packages are best for restaurants? 313 7
- Capital Gains Tax on title transfer 135 5
- Raiders of the Lost Tax File 1,296
- Chartered Accountant in County Down N.Ireland 460
- National Insurance 358
- Non Resident 275
- Franchise income and costs 252
- Hands on experience of Digita 208
- Best way to take money from a business if you have unlimited EIS allowances? 167
- Employer's Helpline 158
- employment capital allowances 150
- CIS paid under reg 9 138