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.
- Amend a 2010/11 return 33 1
- Advanced SMP, but employee returns to work early 133 1
- How to deal with prior year error 102 2
- Repaying Directors Loans within 9 months 492 19
- Bookkeeping Rate of Pay 2,310 33
- Is Xero payroll as rubbish as I suspect it is? 1,050 19
- What's the Barmiest Reason A Client gave you for going? 2,020 20
- Tax Calculations 647 10
- Tax Fines - HMRC 370 4
- VAT - Check on clients business 574 24
- Exemption from CGT 201 2
- VAT Registration 209 3
- Digita Users - Can you please confirm? 457 14
- Autumn statement predictions 401 8
- ACCA Practising Certificate Holder 291 4
- How to claim relief under a Double Taxation Agreement 166 3
- Moneysoft error 421 7
- Repaying Directors loan by transferring an asset 643 26
- New client wants to submit tax returns from 06/07 to date, how many years can actually be submitted? 461 3
- Employer Pension Contribution 200 1