.png)
.png)
Employer or recipient: who is liable for PAYE and NI on a bonus, asks SHAWN HEALY
KEY POINTS
- The recipient employee is chargeable but the employer is responsible for collection.
- Recovery of underpaid income tax from the employer or third-party.
- Determining that recovery should be from the employee.
- The National Insurance contributions position.
The recent case of David A Marshall Jeweller Ltd [2012] FTT 262 (TC) looked at the question of who was liable for PAYE/Class 1 National Insurance contributions on a bonus payment: the employer or the recipient.
A simple question you might think and one that is very pertinent in the current climate of economic woe and increased HMRC focus on tax loss.
That case involved a company director and shareholder who received a bonus which was credited to his directors’ loan account and declared on his self assessment tax return as employment income but with...
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.
