Deducting damages from employee pay - taken from net or gross?
I got asked this question yesterday, and i should probably know the answer, but it hasn't come up before in my short career and therefore intrigued me to find out for my own sake. I've looked all round google and HMRC docs to find the answer, but still cannot see it in black and white. So now i seek the help of accountingweb members.
If it had been agreed in the employment contract that damages incurred to equipment etc could be deducted from employee pay, would these be deducted from the gross or net figure?
I'm heavily lent toward it being deducted from the net, only because what i have learnt about pre tax deductions consists mainly of pensions and similar.
It makes sense that these expense are incurred for the purpose of the trade (IE wouldn't have been incurred anyway, required to get business back to operating as before) however i have also seen a case whereby other damages were not allowable as a pre tax deduction as it effectively shared the burden with society.
Maybe i have read to much into this now and have muddled my own thinking, so please can someone just clear this up and point me in the right direction.
- Reasonable excuse for not filing returns....Death? 271 4
- Incorporated when they should not have 105 5
- Why would they want his purchase invoices?? 701 17
- pension paid by company? 279 7
- Late annual return 74 1
- Charity work 186 10
- Company Director In Prison 327 8
- Subcontractor and CIS Deductions made by Contractor 203 12
- HMRC Agents Line 69 2
- Tax position re this lease? 310 5
- Managing Employee Expenses 161 6
- IHT 205 partnership and business interests 43 1
- Has anyone read the implications of the Lisbon treaty? 1,667 60
- inheritance tax 553 14
- donations to school via self employed business (registered charity) 149 5
- Is compensation for surrender of a lease subject to VAT 52 1
- Do I need a smartphone? 608 21
- SA Agent's Priority Line 144 5
- Entrepreneurs relief available? 773 24
- MAAT vs ACCA 401 7
- Property exchange - 8-year legal delay following fall-out 671
- Have you staged yet for auto enrolment? 492
- Cancelled 423
- Cancelled 360
- SAGE Payroll Data for Import to MS Dynamics AX 359
- Probiz 332
- Free-standing washing machine - unfurnished lettings 320
- Phishing emails purporting to be from CIPFA? 241
- Is this UK incapacity benefit taxable in UK or Jersey? 212
- Another HMRC computer glitch? 195