Magistrate's allowance - tax treatment and reporting in SATR

MarieNoelleMarieNoelle Trusted RegularHampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,448
I have a sole trader client who also acts as a Magistrate - she claims an allowance for loss of earnings as well as expenses.
My thoughts are that the allowance should be included in self employed income but expenses are not taxable. Any one familiar with the tax treatment and reporting of this?
Thanks in advance.

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,448
    Just to add, it looks like the rate for self employed magistrates is stated gross so this would confirm my thoughts.
    Previous adviser never asked for bank statements and never queried this so I would appreciate any input. Thanks.
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,440
    edited November 2016
    Not dealt with this before but this may help a bit - http://www.accountingweb.co.uk/any-answers/magistrates-expenses

    I would think logivally treating the loss of income as self-employed income of the business would make sense as they are covering the lost income of that business.

    As for the expenses such as mileage etc then I would treat this as the same as employment expenses and assuming all is below the taxable limits then there is no reporting due.
    Regards,

    Burg
    MarieNoelle
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,448
    Thanks @burg I also think this is the most logical treatment
    (but sometimes tax isn't logic, is it?)
    :)


Sign In or Register to comment.