I have a client who is a LTD company PSC. The LTD Co has received income net of VAT and PAYE under the IR35 rules (his client is a govt office).
The P60 he has been given is in his personal name.
Am I right that the P60 being in his name is ok, the fact that VAT has been deducted and PAYE has been deducted before payment is made is ok, but ultimately there is no further tax to be paid on this income.
Therefore on the LTD co accounts I need to show the profit, then dedcut the income under IR35 as it is non taxable somewhere on the tax comp. Then the Net IR35 income can be taken out tax free and doesn't need to go on client's SAR? The P60 PAYE income goes on SAR but should be no further tax payable.
Does this sound correct?