LLM5430 - Names: earned income, pension contributions, NIC
Earned income
바카라 사이트˜Earned income바카라 사이트™ for income tax purposes is income from an individual바카라 사이트™s business which is immediately derived from the carrying on by him of that business (ICTA88/S833 (4)(c)). Its main importance now is in determining what are relevant earnings for RAR and PPP purposes, or relevant UK earnings for entitlement to tax relief on contributions to a registered pension scheme.
From 6 April 1993, all profits from the business of underwriting as a member of Lloyd바카라 사이트™s are deemed for all Names (바카라 사이트˜working바카라 사이트™ and 바카라 사이트˜external바카라 사이트™) to be earned income for income tax purposes (FA93/S180). This does not extend to the income received by partners from SLP members of Lloyd바카라 사이트™s, but it does apply to income received by members of an LLP (see LLM6150).
As deemed 바카라 사이트˜earned income바카라 사이트™, Lloyd바카라 사이트™s profits and losses are part of 바카라 사이트˜relevant earnings바카라 사이트™ for the purposes of working out the level of pension contributions and retirement annuity relief, and for entitlement to tax relief on contributions to a registered pension scheme. This deeming provision in FA93/S180 applies only to income tax, and does not determine the application of the Class 2 and Class 4 NIC charging provisions.
Pension contributions pre A-day
Relief for pension contributions was based on the total earned income for the year less certain deductions.
Carry back of pension payments
For pension contributions made in 1997-98 and later, the same rules apply to Names as to other taxpayers.
Time limits
From 6 April 2001, a Name (like any other taxpayer) paying a contribution up to 31 January in that same tax year could elect for that contribution to be treated as paid in the previous tax year. The election could only be made before or at the time of payment. It was not possible to carry back payments to a year before the preceding year.
Class 4 National Insurance Contributions
바카라 사이트˜Under Review바카라 사이트™