Hm Courts Tribunals Service
March 13
15:08
2023
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Judicial Summary
Claimant received bonus payment in period 1 subject to tax deduction under PAYE. Claimant then received tax refund in period 2, same tax year, also through PAYE. Question whether wrongly treated as earned income. Claimant relied on reg. 55(4A) and contended he was on unpaid sick leave at all material times. Was reg. 55(4A) relevant? When did entitlement to bonus arise? Was claimant in paid work while on unpaid sick leave? Reg. 55(4A) irrelevant reg. 61(2) applied to assess income. Reg. 55(4A) concerned with refunds in following tax year. In paid work extends to case where contract of employment continues although employee on unpaid sick leave.