We have a client who is now working for the European Bank for Reconstruction and Development. Basically, this income is exempt from UK income tax under some obscure agreement.
She was, however, self employed in the UK for the first part of the current tax year and we are working out her payments on account for 2019/20. The legislation says:
"the Government shall retain the right to take these salaries and emoluments into account for the purpose of assessing the amount of taxation to be applied to
income from other sources.".
Her salary would normally take her well over the BR threshold. So would you calculate POAs on the basis that tax will be due at 40% on all of her self employment income?
Normally I would not be too worried, but the client says that due to this agreement, she is not allowed tax refunds, so if we over estimate the POAs then perhaps whe won't get any of it back if it is wrong?
If anyone has some firrsthand experience of this I owuld be very greatful.