We act for an individual who was a financial controller at a small financial institution. Unfortunately, our client has been paying himself an excessive salary. The employer is now aware of his actions and, unsurprisingly, is seeking to obtain a repayment of the amounts overpaid. It is estimated that our client paid himself (in round terms) about £500,000 over and above his correct salary over a period of five years.
We act for an individual who was a financial controller at a small financial institution. Unfortunately, our client has been paying himself an excessive salary. The employer is now aware of his actions and, unsurprisingly, is seeking to obtain a repayment of the amounts overpaid. It is estimated that our client paid himself (in round terms) about £500,000 over and above his correct salary over a period of five years.
When the extra salary was paid, the 'correct' PAYE and National Insurance contribution deductions were made from these amounts and appeared on all relevant PAYE and personal tax returns. Our client is prepared (well actually, he does not have much choice!) to repay the amounts due. However, he wants to know whether the Government should (or will) repay the income tax and National Insurance elements. Readers' comments on this situation will be much appreciated.
We are aware of our reporting obligations under the Proceeds of Crime Act 2002. However, all parties are hoping to resolve the issue as far as possible in a low-key way.
Query T16,654