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?
- What are options for non CA firm 2,396 52
- I have missing sales invoices 340 5
- Dissolving company to avoid CCJ 185 1
- is my company accounts right? 643 16
- Invoice Help 347 10
- VAT on sales net of CIS suffered 219 8
- Class 2 National Insurance contributions 344 5
- Summer evenings and ponderings of capital allowances 350 5
- Have I dropped a major clanger? 941 19
- Errors in prior year accounts 1,043 26
- Directors Subsistence 190 1
- (CIMA) - Qualified to Management Level (2006) 241 4
- Filing FPS early with moneysoft 418 16
- Purchase of freehold by flat management company 265 3
- Final year's accounts 337 3
- Do I need to report this to SOCA 2,914 27
- Exactly which business miles can I claim from my employer? 1,486 20
- Free Shares ? 329 6
- Dividend dates 334 6
- Sxx rather than sxx 305 3
- Property exchange - 8-year legal delay following fall-out 552
- SAGE Payroll Data for Import to MS Dynamics AX 318
- Cancelled 314
- Cancelled 264
- Have you staged yet for auto enrolment? 225
- Married woman dies owning marital home 216
- Probiz 205
- What's the market like for temps? 200
- CIS Deductions 162
- Phishing emails purporting to be from CIPFA? 158