A client has worked at 2 Post Offices for some years. Income from one treated as PAYE. The other given a NT code (presumably due to having a shop in same premises) and Accounts have been prepared to 30 June each year.
When she got her P60s for 2017/18 both now show NT code and figures for income and tax shown as nil. A letter sent by Post Office Services centre (presumably due to queries about no income shown) states HMRC have confirmed the P60 is correct as no payment as been subject to a calculation of tax.
She had actually had deductions and a BR coding until Feb 2018 when it changed to no tax. I assume now retrospectively the whole tax year is treated as self employed. She rang HMRC and they said it was a remedial code but couldnt give any more advice.
I am confused by this as I thought the concession to be treated as a trade was disallowed after 5 April 2017 and only those already on NT code could have extention of this until 5 April 2019.
It also poses a problem for me as Accounts were prepared to 30 June 2017 including the 1 source that has always been NT. But it now appears that the other Post office income should be treated as a trade from 6 April 2017 which means amending the Accounts to include income from the 2nd source from 6 April to 30 June 2017. I couldnt have known back then that they were going to retrospectively change the way it was taxed. It seems an oddity I havent come across before and would be most grateful for any thoughts on
- why the income would be changed from PAYE to trading when I thought this wasnt allowed after 5 April 2017
- if there is any way round redoing the Accounts to 30 June 2017.
I would be expecting the opposite to be happening and presumably it will change back to PAYE after 5 April 2019 anyway