Apologies I omitted to mention the very important point that I had intimated the fee would be between £500 and £1,00o and would confirm final figure once all work was complete and submitted.
Again, thanks for the further responses.
This is a great site, thankyou to all contributors. Very beneficial when you local peer pool is not significant.
The tax demand was removed legitimately through submission of lawful o/s returns with an appeal of penalties having been submitted for which I am awaiting a response.
The client has an expectation there could well be commission for removal of said tax demand (their own thinking) but I will not be charging for this and instead deem as a goodwill gesture - win win for both parties.
The two employees receiving the salary do not avoid paying tax/nic on these second salaries and deal with the impact of this on their own earnings through their own personal annual tax return.
Many thanks for your informative replies.
There are no terms attached to the repayment of the salaries - the net salary amounts are are being repaid to the company in full as agreed at a board meeting and the employees being paid the salaries are looking after their own personal tax liabilities. Therefore, as such the salary repayments should be treated as a gift to the company and classified as other income in the annual accounts as you suggest.
My answers
Thanks for your reply.
Please see update just posted.
Apologies I omitted to mention the very important point that I had intimated the fee would be between £500 and £1,00o and would confirm final figure once all work was complete and submitted.
Thanks
Confused.com my dear sir and no I am not the person you refer too!
Thanks anyway.
Thanks WP - fair point and will note for future questions.
Appreciate your and others responses and clarity.
Aha, hopefully not lol. Point taken.
Again, thanks for the further responses.
This is a great site, thankyou to all contributors. Very beneficial when you local peer pool is not significant.
The tax demand was removed legitimately through submission of lawful o/s returns with an appeal of penalties having been submitted for which I am awaiting a response.
The client has an expectation there could well be commission for removal of said tax demand (their own thinking) but I will not be charging for this and instead deem as a goodwill gesture - win win for both parties.
Thanks all for your prompt responses.
I don't intend to charge as like your responses it suggests underhand and over indulgence for work already completed.
Also as a reasonable sort my conscience doesn't really allow me. Ha ha.
Hi DouglasN,
The two employees receiving the salary do not avoid paying tax/nic on these second salaries and deal with the impact of this on their own earnings through their own personal annual tax return.
Thanks
Mick
Hi Paul,
Many thanks for your informative replies.
There are no terms attached to the repayment of the salaries - the net salary amounts are are being repaid to the company in full as agreed at a board meeting and the employees being paid the salaries are looking after their own personal tax liabilities. Therefore, as such the salary repayments should be treated as a gift to the company and classified as other income in the annual accounts as you suggest.
Many thanks
Mick
Yes, the company is operating and registered for paye/nic Bernard.
Thanks for your response.