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?
- Capital Gain? 407 11
- IHT Query 63 2
- Reversing out RTI 114 5
- When should i raise VAT invoice after pro-forma payment received? 297 9
- Abandoning accountancy membership in order to operate as a sole trader 847 22
- Gift or Capital Gain? 300 8
- Sage instant bank rec - is it possible to clear past transactions and reconcile from a given month? 271 6
- BrightPay 612 18
- Classic cars investment 241 7
- Are Court and tribunal Judges honest/commit fruad ? 232 3
- Client charged VAT by US supplier 322 7
- What are CIS subcontractor clients worth to you ? 346 7
- New Company - Corp Tax Period 272 9
- Fees for dealing with auto-enrolment 272 2
- H&W company 251 3
- VAT on sale of Vehicle 205 3
- tax teatment of index linked mortgage repayment 173 2
- How much?? (ACCA rules on practice insurance) 187 1
- Does anyone use a cloud based payroll software 810 32
- VAT silly question 2,416 56
- Benchmarking 496
- Possible Partnership? 439
- Tax and accounting treatment on long lease granted from freehold 414
- Lunatics in charge of the asylum - Bluestone 414
- Old Books for a 'NON' Client 359
- Purchase of property freehold - capitalisation of costs 214
- Growing Limited Company concerned about assets if something goes wrong 211
- Clubs and Taxable Income 203
- Income tax on foreign dividends 194
- Subsistence and hotel expenses 188