A client has been paid £64.95 per day for Jury Service.
He has part-time employment income and and income from a personal service company.
I understand that this should not be taxable if it relates to loss of employment income but what is the position regarding the PSC? I need to confirm with the client the actual basis of his claim but, as he works for a Council, I would have thought it likley that he did not suffer any employment income loss so I assume that this is a loss of company income and should therefore be included in the company accounts as income (although payments seem to have been banked personally).
Can anyone clarify how this should work and the tax position? Is this a legitimate claim if no actual income loss was incurred?
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Not income of the company
S.19 Juries Act 1974 says "a person who serves as a juror " is entitled to an allowance for loss of earnings (plus other expenses specified).
The PSC was not called as a juror (and naturally never could be) and so cannot be entitled to payments. Only its employees/directors can. Thus, in my view they cannot count as income of the PSC.
Further, I don't see a means by which HMRC could treat the payments to the director as IR35 deemed earnings.