31-03-2008
Income Tax PAYE Amendment
The Income Tax (Pay as You Earn) (Amendment) Regulations 2008 have been laid before Parliament.
The reason for the amendment is that in the case of Demi Bourne v HMRC a ruse was identified by the Inland Revenue whereby if an employer had mistakenly thought that someone was self-employed, they could claim full tax and National Insurance for that self-employed person, without paying back the tax and National Insurance already paid by the “employed/self-employed person”.
The long and the short of it is that an individual could end up paying twice.
As of 6 April 2008 this will no longer be a viable option so it is rather nice to see regulations being brought into force that see less tax being paid.
The reason for the amendment is that in the case of Demi Bourne v HMRC a ruse was identified by the Inland Revenue whereby if an employer had mistakenly thought that someone was self-employed, they could claim full tax and National Insurance for that self-employed person, without paying back the tax and National Insurance already paid by the “employed/self-employed person”.
The long and the short of it is that an individual could end up paying twice.
As of 6 April 2008 this will no longer be a viable option so it is rather nice to see regulations being brought into force that see less tax being paid.
