Requesting PAYE information from a contractor

Client has been asked to provide information on how his Ltd company paid him.

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Hi 

A client of ours (director of a ltd co of which he is sole director s/holder) has been asked by a client of his, XYZ Ltd, the following (copy and paste - name change only): 

Could you help us with one info - when you were contracting with XYZ Ltd, were to getting your salary under PAYE from your limited company? This information is needed for some tax claims for XYZ.

When our client pressed for futher details, XYZ came back to him saying it was in relation to a R & D tax claim. 

I am assuming that they are checking on the basis of an RDEC claim and the payments to individuals only. However I thought I would check before telling him it is fine to repsond. 

Our client pays himself a salary from his limited company via PAYE and doens't fall within the scope of IR35 if that makes a difference. 

Replies (3)

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By Matrix
19th May 2020 15:41

They claim 65% of the contractor company’s invoices as applicable, how the company paid him is irrelevant and none of their business. I have no idea why XYZ are asking this.

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Replying to Matrix:
ALISK
By atleastisoundknowledgable...
19th May 2020 20:43

Matrix wrote:

They claim 65% of the contractor company’s invoices as applicable, how the company paid him is irrelevant and none of their business. I have no idea why XYZ are asking this.

Seconded. It’s totally irrelevant to their R&D claim.

Thanks (1)
Replying to Matrix:
ALISK
By atleastisoundknowledgable...
19th May 2020 20:45

Matrix wrote:

They claim 65% of the contractor company’s invoices as applicable, how the company paid him is irrelevant and none of their business. I have no idea why XYZ are asking this.

Seconded. It’s totally irrelevant to their R&D claim. I suspect XYZ LTD have been asked ‘was he paid PAYE‘ and they’ve misunderstood the question.

Thanks (1)