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best earnings

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kiosk
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Joined: Fri May 25, 2012 10:53 am

best earnings

Post by kiosk » Fri May 25, 2012 11:36 am

I looked to attach this to a existing post, but this seems unique.

I am a minority shareholder 5%, and also on the board of directors.
This is a American LLC company thats owns a UK company that I was employed at. The UK company stopped payroll 2 months ago and the US company started paying me.
The problem is, The US company (that I am a director) paid me in cash. Meaning direct deposit, no taxes taken out, like a contractor.
So I will claim this full amount to the HMRC as employed and have UK taxes taken out.

Does anyone have an experience as what is the best way to report this £15,000? Cash bonus? Salary? payment in lieu of notice? etc?

I do not want the UKba to say 'where are your class 2 or class 4 NI payments'. There are none, HMRC considers me employed - right? And since I just received this money, I am thinking I can make a quick class 1 payment to show UKba it is taxed income.

Please please, help with any guidance or offer of service.

geriatrix
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Joined: Fri Mar 17, 2006 3:30 pm
Location: does it matter?

Post by geriatrix » Fri May 25, 2012 11:49 am

UKBA cannot ask you for Class 2 / 4 NI contribution evidences, as you don't hold majority stake in a company that you are an employee of, and therefore not "self-employed".

You have received 15000 quids from payroll which are yet to be taxed. But UKBA is not bothered about your taxable income or whether or not you have paid tax as an employee ... only gross income.

As an employee, taxes are paid through PAYE .. and this 15000 quids should be taken into account as and when PAYE contributions are made.

So, what's the issue? Or have I missed the plot?
Life isn't fair, but you can be!

kiosk
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Joined: Fri May 25, 2012 10:53 am

Post by kiosk » Fri May 25, 2012 7:47 pm

Sush.... Thanks for the reply.
The plot is that the 15,000 I received is not a dividend, and it is not any employee payroll.

If the US company states they give me monthly cash 'for helping them out', I don't want the UKba to see this as a contractor getting paid (self employment)

So I was asking, how to present this income to the UKba as to the reason this money was obtained - to ensure they accept it as employed and no class 2 or 4

Am I worrying too much???

geriatrix
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Joined: Fri Mar 17, 2006 3:30 pm
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Post by geriatrix » Fri May 25, 2012 7:55 pm

Without a letter from employer confirming such payment(s) as statutory obligation under the terms and conditions of your employment, or without such payment(s) reflected in the payslips you will not be able to claim these payments as your earnings from employment.

If you show these as earnings from self-employment under a company structure (employee of a company that you are a controlling shareholder of), you'll then be required to provide invoices for these payments .. as payment for services rendered to a client.


Is this 15000 quids a one-time payment? Or spread over months?
Life isn't fair, but you can be!

Sushil-ACCA
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Location: Wembley Park

Re: best earnings

Post by Sushil-ACCA » Sat May 26, 2012 5:24 pm

kiosk wrote:I looked to attach this to a existing post, but this seems unique.

I am a minority shareholder 5%, and also on the board of directors.
This is a American LLC company thats owns a UK company that I was employed at. The UK company stopped payroll 2 months ago and the US company started paying me.
The problem is, The US company (that I am a director) paid me in cash. Meaning direct deposit, no taxes taken out, like a contractor.
So I will claim this full amount to the HMRC as employed and have UK taxes taken out.

Does anyone have an experience as what is the best way to report this £15,000? Cash bonus? Salary? payment in lieu of notice? etc?

Self employed income




I do not want the UKba to say 'where are your class 2 or class 4 NI payments'. There are none, HMRC considers me employed - right? And since I just received this money, I am thinking I can make a quick class 1 payment to show UKba it is taxed income.

U have to report HMRC about such rcpts as these r not PAYE

Before claiming from HO get NI letter to make it simple

Please please, help with any guidance or offer of service.

kiosk
Newly Registered
Posts: 3
Joined: Fri May 25, 2012 10:53 am

Post by kiosk » Mon May 28, 2012 6:02 pm

again, thanks for the feedback.

The £15,000 was one payment. Basically when I was employed by the UK company, I received £5000 / month. Now the US company is continuing paying £5000 / month (BUT in cash like a contractor). They paid 3 months at one time to help me make my '12 month earnings points'

FINAL QUESTION - If I invoice the US company £15,000 (or three £5,000), will UKbc look for class 2 &4. Or do I avoid it being a shareholder & director.

Again, thank you, thank you - I wish I could offer you something:)

Sushil-ACCA
Diamond Member
Posts: 1234
Joined: Wed Apr 02, 2008 1:47 pm
Location: Wembley Park

Post by Sushil-ACCA » Mon May 28, 2012 8:38 pm

U have to report HMRC about such rcpts as these r not PAYE

Before claiming from HO get NI letter to make it simple OTHERWISE troubles r waiting for u

shargaur
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Post by shargaur » Mon May 28, 2012 9:35 pm

simply, get letter from employer that this is one off bonus. Pay taxes on this income and you will be fine.

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