NHS loss of Earning - Is this taxable

NHS loss of Earning - Is this taxable

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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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By User deleted
25th Jan 2016 22:44

If it's to replace lost earnings why shouldn't it be taxable? No idea if it is but it should be.

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By Cathy R
26th Jan 2016 08:41

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:

http://www.hmrc.gov.uk/manuals/eimanual/eim01120.htm

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By JimLittle
26th Jan 2016 10:00

Thanks Cathy

Seems unfair one is taxable and the other isn't.  My client is self employed and will have to pay tax when trying to save his daughter this also seems unfair. 

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By craig preece
26th Jan 2016 10:58

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. 

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By Marion Hayes
26th Jan 2016 10:58

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  

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