New queries, issue 4290

01 February 2011

Issue: 4290 / Categories: Forum & Feedback

Reporting backdated earnings; only or main residence election on second property; VAT and cycle-to-work scheme; employees’ late night taxis

Tax time

In 2010/11 a retired medical practitioner received a substantial sum following a successful pay review backdated to 2004 but I am not sure in which year(s) this sum should be returned.

My reference materials indicate that earnings are treated as received at the earliest of the time when actual payment is made or the time when a person becomes entitled to payment.

The client was certainly entitled to the earnings from October 2004 onwards – that is the outcome of the NHS pay appeal.

However ITEPA 2003 s 15(3)(a) would have brought them into charge in 2010/11 (‘whether the earnings are that year or for some other tax year’). Sadly FA 2008 Sch 7 para 9 rewrote s 15 and whether by accident or design

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.