Will I be taxed on surgery?

[King_Maker]

If the OP is indeed self-employed for all his contracts, an unexpected & unsolicited gift is not likely to be taxable as trading income - nor any other income nor capital gain - there are several (old) cases on the subject.

I would be more concerned for the company and the possible failure to operate PAYE (including interest and penalties)- if the position is one of employer & employee

[section 44]

an unexpected & unsolicited gift

sounds like a high threshold here. of all of the hundreds of thousands of people that the company could have paid for to have medical treatment, why did it choose this individual?

[bd6759]

BD6759

Only in the cash basis at ITTOIA 2005, which I accept is not relevant here.

Please enlighten me where it defines receipts as cash. The definition actually refers to any receipt. (s31A(5)).

I do not accept your loaves and fishes argument because you are not addressing the fundamental point I am making, ie you and others are making an assumption that a payment on behalf of the OP is income, on the basis that it might or must relate to services rendered by the OP when there is clearly no tax law that any of you can quote to support that view, my point is not how income is received, it is whether it is income at all, if you read the Miscellaneous income provisions either at ITTOIA 2005 or ITA 2007 you will see no basis on which the amount is to be classified as income.

The reason there is so much legislation at ITEPA 2003 regarding BIK is that IT would not be collected if it were not there, my point here is that in order to collect IT on the payment there would need to be some charging provision whereby the payment involved could be classified as income, you cannot simply assume it is because there is a link between the two parties.

Whether a payment is taxable or not depends on why it was paid, and there is a plethora of legislation and case law to support that view. There is nothing in law that specifically states "PJW11 will be taxed on the healthcare provided by X." But there is legislation that states that the profits of a trade or profession will be taxed. I agree that we do not know why X is paying for this healthcare, but given that PJW11 has worked for X for a number of years it is not an unreasonable assumption that it is a payment for past services, or to ensure that he can continue providing a service. In those circumstances the value will be part of the trading income. (Gold Coast Selection Trust?).
I've just come up with a great tax avoidance scheme. Instead of asking for cash I should send clients my household bills and ask them to pay them instead.

[section 44]

I've just come up with a great tax avoidance scheme. Instead of asking for cash I should send clients my household bills and ask them to pay them instead.

Indeed, perhaps they'd be "gifts". Like the gifts that my employer gives me at the end of each month - is it normal to have 12 birthdays every year?