Director / Employee Awards

[Podgy]

As a company director you would have needed to declare these on your tax return for each year in question, and it may be too late to go back and now make amendments to some years. Plus, if you're amending accounts and tax returns for so many years then you're nigh on inviting an investigation.

What were these amounts originally declared as in the accounts and SATRs? Dividends?

I have until Jan to do SA & can adjust in previous years.

I put an accrual for just under 6K for directors fee in the 2010-2011 - the majority of dividends were proposed.

2009-2010 - I did not put any salary in - the profit was peanuts! but enough to pay some corp tax. A small dividend was declared.

[Podgy]

I have done the SA each year - by reporting requirements I mean paye.

I cant see anywhere where the exam award does not apply to a director?

I was not working at the time & the exams I did have been very beneficial to the company - my current contract directly relates - I have all documentation of the course/s/certificate - I think I deserve an award!

[Clare@InTouch]

I have done the SA each year - by reporting requirements I mean paye.

I cant see anywhere where the exam award does not apply to a director?

I was not working at the time & the exams I did have been very beneficial to the company - my current contract directly relates - I have all documentation of the course/s/certificate - I think I deserve an award!

Excluded employees are those earning below £8,500 who are not also directors. This prevents a director paying himself a low wage and then taking advantage of the rules by paying benefits that would otherwise be taxable to normal employees.

[Podgy]

I have until Jan to do SA & can adjust in previous years.

I put an accrual for just under 6K for directors fee in the 2010-2011 - the majority of dividends were proposed.

2009-2010 - I did not put any salary in - the profit was peanuts! but enough to pay some corp tax. A small dividend was declared.

Dates wrong above;

I am preparing 2010-2011 now.
I put the Directors fee accrual in 2009-2010.
I did not put any salary in 2008 - 2009.

[Clare@InTouch]

EIM01100 - Employment income: examination grants to employees

Sections 62 and 203 ITEPA 2003
Following the decision in Ball v Johnson (47TC155) examination awards paid by employers to employees for passing a recognised examination are not taxable as earnings within Section 62 ITEPA 2003 (see EIM00515) where all the following conditions are satisfied:

the award is made at the discretion of the employer (that is, the employer is under no legal obligation to make the award)
it is not part of the employee's duties to sit and pass the examination (for example, dismissal does not automatically follow failure)
the award takes the form of a lump sum paid once and for all
the award is reasonable in amount and there is no evidence to suggest that it represents disguised remuneration
the employee is in lower paid employment (see EIM20100).
For directors and employees who are not in lower paid employment the award is treated as earnings by Section 203 ITEPA 2003. If the award is in the form of cash, PAYE should be operated at the time of payment.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Special increments of salary granted on passing examinations are chargeable in the ordinary way.

Employment income: examination grants to employees

[northernladuk]

I have done the SA each year - by reporting requirements I mean paye.

I cant see anywhere where the exam award does not apply to a director?

I was not working at the time & the exams I did have been very beneficial to the company - my current contract directly relates - I have all documentation of the course/s/certificate - I think I deserve an award!

Why do people ask for advice and then don't read and won't listen to it when it is given....

Just for a laugh, fancy telling us what they are?

[Clare@InTouch]

Dates wrong above;

I am preparing 2010-2011 now.
I put the Directors fee accrual in 2009-2010.
I did not put any salary in 2008 - 2009.

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.

[Podgy]

EIM01100 - Employment income: examination grants to employees

Sections 62 and 203 ITEPA 2003
Following the decision in Ball v Johnson (47TC155) examination awards paid by employers to employees for passing a recognised examination are not taxable as earnings within Section 62 ITEPA 2003 (see EIM00515) where all the following conditions are satisfied:

the award is made at the discretion of the employer (that is, the employer is under no legal obligation to make the award)
it is not part of the employee's duties to sit and pass the examination (for example, dismissal does not automatically follow failure)
the award takes the form of a lump sum paid once and for all
the award is reasonable in amount and there is no evidence to suggest that it represents disguised remuneration
the employee is in lower paid employment (see EIM20100).
For directors and employees who are not in lower paid employment the award is treated as earnings by Section 203 ITEPA 2003. If the award is in the form of cash, PAYE should be operated at the time of payment.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Special increments of salary granted on passing examinations are chargeable in the ordinary way.

Employment income: examination grants to employees

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

[Podgy]

Why do people ask for advice and then don't read and won't listen to it when it is given....

Just for a laugh, fancy telling us what they are?

Web Design - Intermediate & Advanced (C&G) - distinctions

[northernladuk]

Web Design - Intermediate & Advanced (C&G) - distinctions

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.