Hello
A client is an employer who has had an employee go off on jury service
The ER paid the EE full pay during this time
The EE filled in a form for loss of earnings and receved the maximium £64.95 daily rate
The £64.95 had been taken off the EE as a net deduction from her pay.
I think this is incorrect.
If the ER had chosen to pay less than the EE's full pay then there was a valid claim for the Jury allowance - but the fact that there was full pay means there should not have been a claim.
The ER and EE are happy to say that there was an agreement that pay would be reduced during the jury service by the allowance amount, retrospectively, however even then the deduction of the allowance received should be a Gross deduction not a Net deduction. side note I believe the EE is not subject to tax on the allowance
Am I correct that it should be a gross deductiona and that the EE allowance is not taxable
thanks
Replies (15)
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What did the employee fill in on the jury service claim form? As this asks whether the juror will suffer a loss of earnings?
This bit on David's link pretty much confirms it should be deducted from gross pay.
Otherwise there'd be no spare personal allowances.
"When your employee returns to work
An employee on a cumulative tax code may have some unused Personal Allowance when they return to work.
Your payroll software will work out if they have less tax to pay on their next payday, or if they’re entitled to a tax refund."
This bit on David's link pretty much confirms it should be deducted from gross pay.
Do you know what? I think Google searches could catch on.
This bit on David's link pretty much confirms it should be deducted from gross pay.
And is that a verdict upon which you are all agreed?
Yes ... and to all questions asked by OP.
Although I've seen loads of Employment T&Cs with the same wording, it is sloppy & verging on plain wrong.
* EE can only claim if suffering a loss in earnings from ER (clue's in the name);
* If ER wishes to go the deduction route (really a kind of inverted top-up) then it must be 'taken' from Gross pay.
* Whether or not Jury Loss of Earnings allowance is taxable is not ER's concern.
What about this part of the link though.
"To work out the top-up payment, subtract the court allowance from your employee’s usual take-home pay. This will give you the amount you need to give your employee."
What about this part of the link though.
"To work out the top-up payment, subtract the court allowance from your employee’s usual take-home pay. This will give you the amount you need to give your employee."
Well spotted. Well, it sounds like whoever wrote that guidance doesn't know what they're talking about. They can't both be right.
Except one might refer to an employee that you do pay and one might refer to one that you don't.
I think the part you quoted (along same lines of thought as TD) that it was just general info, in case employers think the tax is wrong or they get any queries from employees about the tax being wrong.
After the part I quoted, it goes on to tell them that they should use their software to calculate the gross from the net.
So there will be a deduction from gross taxable. Just obviously net of normal tax/ni
Somebody ought to just say to the Courts Service "if you want folk to work for you, pay them wages like proper employers are supposed to do."
B..b..b..but it's not work - it's your public duty! Plus jury members are 'all equal', so they can't be paying your (or my) wages at the same time as the NMW to compadres sitting beside you.
I had to fake falling asleep in session to get discharged. Asked to explain myself I pointed out that my work wasn't getting done sitting in court, so I did it all night!