I don't think this will be relevant for PAYE income, Rowley. Income tax will
be deducted at source when payment is made, as usual, and whether that
occurs within this tax year or next tax year should be irrelevant,
particularly as most consultants are all well over the 40% tax threshold
anyway. Most are also liable for maximum National Insurance contributions.
I'm not sure there are any part-time consultants where this additional
income will push them over the threshold into a new tax band; I very much
doubt it. But it shouldn't have any effect upon full timers. Finally, bear
in mind that many consultants won't actually be eligible for any back pay
under the new contract!!
AF
P.S. Of course money's more interesting than anaphylaxis!
----- Original Message -----
From: "Rowley Cottingham" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Sunday, March 14, 2004 2:18 PM
Subject: Consultant back pay
> While we are on the subject of money (which seems far more popular than
anaphylaxis) can I
> enquire - has anyone asked an accountant or whomever about back pay that
is owing over a year
> for transferring to the new Consultant contract? The rules on taxation are
clear that the liability for
> tax accrues when the money is EARNED not when it is paid. This is going to
be fiendishly difficult,
> expensive and possibly illegal if the tax liability is carried over to the
next financial year. I hear that
> many Trusts will not be able to pay until May or later.
>
> Best wishes,
>
>
> Rowley Cottingham
>
> [log in to unmask]
> Visit the new and improved http://www.emergencyunit.com
>
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