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Reply To: As a sole trader, my lump sum wage subsidy is treated as “other income” in a tax return rather than as wages/PAYE. I have just been advised by IRD in writing that because I received it in March it must be declared as income in the 2019/20 tax year. As background I applied for this based on a projected significant downturn in business from April onwards. I applied on 24 March and it was paid to me on 27 March. This treatment seems very onerous on sole traders. If I had known I would have waited until April to apply as this extra tax would have been far easier to deal with if it was apportioned over the 12 weeks it represents or from 1 April 2020. I wonder whether this income tax timing issue which seems to be an ‘unintended consequence’ for sole traders in particular can be challenged or whether anyone has advice on this?

Hey John – thanks for following up, and sharing, this means others can benefit something from this – and I am pleased sense prevailed. Keep well. Andy