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Post Info TOPIC: Jury Service claim from Insurance Company


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Jury Service claim from Insurance Company
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Hi All,

I'm looking for some advice on the following-

My client who is self employed was called up for Jury Service for which he made a claim for Jury Service allowance through Abbey Legal protection. The claim was subsequently settled by them.  I am  currently completing my client's tax return and am not sure whether the claim monies paid are taxable income.  Can anyone clarify this?

 

Many Thanks

 

Richard   

 



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Hi Richard

It would appear to be taxable as it is intended to make up for loss of earnings of trade.

If it it was only for subsistence allowances then it is not taxable.

http://www.hmrc.gov.uk/manuals/bimmanual/BIM40475.htm

Gives a bit moer detail

Bill



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Many thanks for the advice Bill.

 

Richard



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Hi All,

Just another query in respect of the Jury Service claim . As this is for loss of earnings and is taxable would it need to be included in the self employed income on the SA form and thus be included for class 4 NI contributions?

Also if this is the case would you include the income for the claim in the client's y/e accounts or keep seperate and just include in the total for self employed income on the SA form?

 

Many thanks for your help.

 

 

Richard 



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