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Where Taxpayers and Advisers Meet

HICBC and employee deductions

Dave12335
Posts:46
Joined:Sat Feb 09, 2019 10:09 am
HICBC and employee deductions

Postby Dave12335 » Sun May 24, 2020 5:22 pm

Hi tax friends

Can I deduct employee expenses when calculating adjusted net income for HICBC purposes ?

I understand that the HICBC is charged where adjusted net taxable income is higher than £50,000. Obviously this will include employment income BUT is that earnings or net employment income AFTER things like mileage allowance and home working relief ? ( I get that it’s net employment income for IT but what about HICBC?)

HMRC guidance isn’t very clear. I had a look thru s58 ITA 07 and s9 ITEPA but it’s pretty vague.

Thanks!

Dave

Dave12335
Posts:46
Joined:Sat Feb 09, 2019 10:09 am

Re: HICBC and employee deductions

Postby Dave12335 » Fri May 29, 2020 7:06 pm

https://www.mumsnet.com/Talk/legal_money_matters/1650657-Adjusted-net-income

Any thoughts on this ? Link above is the only mention I can find to deducting allowable expenses

Hmrc calculator just ask for salary though so I’m confused.


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