Director / Employee Awards

[Clare@InTouch]

I'm a director in lower paid employment? there is no comma after 'director' so thats how I'm reading it?

The legislation all relates to benefits in kind - there's a clear distinction between excluded employees (those earning under £8,500) and non-excluded (directors and those earning over £8,500).

Income Tax (Earnings and Pensions) Act 2003

216Provisions not applicable to lower-paid employments

(1)The Chapters of the benefits code listed in subsection (4) do not apply to an employment in relation to a tax year if—
(a)it is lower-paid employment in relation to that year (see section 217), and
(b)condition A or B is met.
(2)Condition A is that the employee is not employed as a director of a company.
(3)Condition B is that the employee is employed as a director of a company but has no material interest in the company and either—
(a)the employment is as a full-time working director, or
(b)the company is non-profit-making or is established for charitable purposes only.“Non-profit-making” means that the company does not carry on a trade and its functions do not consist wholly or mainly in the holding of investments or other property.

[northernladuk]

The legislation all relates to benefits in kind - there's a clear distinction between excluded employees (those earning under £8,500) and non-excluded (directors and those earning over £8,500).

Income Tax (Earnings and Pensions) Act 2003

216Provisions not applicable to lower-paid employments

(1)The Chapters of the benefits code listed in subsection (4) do not apply to an employment in relation to a tax year if—
(a)it is lower-paid employment in relation to that year (see section 217), and
(b)condition A or B is met.
(2)Condition A is that the employee is not employed as a director of a company.
(3)Condition B is that the employee is employed as a director of a company but has no material interest in the company and either—
(a)the employment is as a full-time working director, or
(b)the company is non-profit-making or is established for charitable purposes only.“Non-profit-making” means that the company does not carry on a trade and its functions do not consist wholly or mainly in the holding of investments or other property.

That is more or less what I said... but with a slightly different approach

[Podgy]

So really this is all a croc of tulip and is just you avoiding tax which also fails the 'the award is reasonable and there’s no evidence that it represents disguised remuneration' clause.

If you want people to give you sympathy/pat you on the back/tell you what you want to hear go join Mumsnet. If you want advice and want to listen and understand it then post here but don't take the piss.

Avoid tax by paying a bonus for passing a C&G course? You are a disgrace.

Your childish, rude, boring and clearly ignorant! I'm only surprised you mentioned getting an accountant once - its not your normal broken boring record!

[northernladuk]

Your childish, rude, boring and clearly ignorant! I'm only surprised you mentioned getting an accountant once - its not your normal broken boring record!

Looking at your questions and inability to read and understand the information given to you I am convinced it was the best advice you could possibly want.

[speling bee]

Your childish, rude, boring and clearly ignorant! I'm only surprised you mentioned getting an accountant once - its not your normal broken boring record!

'You're childish, rude, boring and clearly ignorant.'

[Podgy]

Looking at your questions and inability to read and understand the information given to you I am convinced it was the best advice you could possibly want.

You forgot to say 'GET AN ACCOUNTANT' - yawn zzzzzzzzzz

[northernladuk]

You forgot to say 'GET AN ACCOUNTANT' - yawn zzzzzzzzzz

It is obvious you are after the answer you want to hear so I am not gonna bother repeating it twice.

[MadDawg]

You forgot to say 'GET AN ACCOUNTANT' - yawn zzzzzzzzzz

Nah, you don't need one. You're clearly doing fine on your own.

[Podgy]

So you've filed your 2008/09 and 2009/10 tax return already, and you want to amend them to add in salary that wasn't actually paid? You accrued £6k in the 2009/10 accounts but didn't declare it on your SATR? And your 2010/11 SATR is late?

To be frank, my only advice can be that you need to talk to an accountant. You could have a whole heap of problems with late and incorrect returns, especially given that penalties are behaviour relates these days.

Yes I want to put the 'actual' salary (rather than the accrual) for the 2009/10 (I'm now submitting amendments which I believe you can do for up to 2 years).

I did'nt declare the £6k in my satr as it was not paid (but will adjust when I do my satr in Jan as you can go back several years).

[Podgy]

Nah, you don't need one. You're clearly doing fine on your own.

Considering my joke of a course (according to NorthernGrump) got a rate rise of £100/day & I can give myself a tax free bonus I think I am!

Clearly its been a learning curve on the accounts but hey what business does'nt make mistakes - so long as they are corrected - I have nothing to hide!