Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration
Home Saved articles Viewed items Login Contact Free Trial
|

Plane stupid

© Copyright LexisNexis 2024. All rights reserved.

27 May 2009
Issue: 4207 / Categories: Forum & Feedback , Income Tax
Is the income received from the police in the capacity as a police informant subject to an income tax charge? Recent press reports indicate that the advice on this matter was that a liability would not arise. If wrong, has false information been supplied? The advice seems wrong, but not such that an offence was committed

A member of the organisation Plane Stupid is reported to have been approached by the Scottish constabulary to recruit her as an informant.

Some conversations were recorded and apparently include the police offering cash and suggesting that the money is tax free with tens of thousands of pounds paid to informants over several years.

It is clearly an offence for any informant to fraudulently evade income tax (FA 2000 s 144) and following FA 2008 Sch 40 there is a new penalty for any third party who deliberately supplies false information to a person intending that person to supply inaccurate documents to HMRC.

Assuming that the news report was accurate were the police correct in suggesting that this payment is not taxable and if incorrect advice has been given would this be outside the new FA 2008 legislation?

Query 17 407 – KMC

Reply by Michael Blackwell...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

READERS' FORUM premium icon
Read All
Tax tip: VAT exemption and the zero rate Feedback: 7 November 2024 Readers’ forum: Appropriation from trading stock? Readers’ forum: Would UK/Canadian tax relief reduce beneficiary’s tax? Readers’ forum: Is late exit from cash accounting scheme a problem?
FIVE WAYS TO MAKE ACCOUNTS PRODUCTION AND TAX EASIER.
Download the exclusive Xero
free report here.

New queries
Please email any questions you might have
to: taxation@lexisnexis.co.uk.

NEWS premium icon
Read All
Double cab pick-up vehicles to be treated as cars Various aspects of capital gains targeted Reforms planned for employee trusts Umbrella companies’ tax responsibilities reformed Deadline dates for December 2024
DEADLINE DATES
CASES premium icon
Read All
Permission granted to cross-examine officer Annex was suitable for use as a dwelling Access to utilities was not the deciding factor No special circumstance for non-payment Limited liability partnership was carrying on a business
MOST POPULAR
This week's opinion: 7 November 2024 First thoughts on the 2024 autumn Budget Tax obligations of a charity trustee Guidance on school fees VAT could be better Panayi Trusts and Redevco Ltd
Copyright © 2024 LexisNexis
back to top icon