My client donated a kidney to his daughter and was paid by the NHS for loss of earning
I cannot seem to find much information on the web if this is actually taxable. It shouldn't be but would appreciate any references
Thanks
Replies (5)
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If it's to replace lost earnings why shouldn't it be taxable? No idea if it is but it should be.
Employed or self employed
With payments for Jury service payments to an employee are deemed net and not taxable, but to a self employed person are gross and taxable. This might be a good starting point:
Not unfair
The employed person will be paid a lower rate as it is calculated net not gross so should be the same end rate after the self-employed has accounted for the tax and NI.
Look at the paperwork
When the compensation was calculated the court would have been looking at out of pocket.
and the paperwork will specify whether it is net or gross within the award.
If it is net then there is no further liability