8 |
13A.2.2.1 Secondment |
Problems may arise where an employee is seconded to work for another firm.43 Thus, where E, the employee, earns fees from the second company but is required to account to the first company for those fees, there is authority to suggest that the payments to E should be treated as E’s taxable income and so subject to PAYE; however, by concession, this is not required.44 Where the employee is seconded to work for a charity on a temporary basis, an express provision allows the employer to deduct the costs as if the employee had remained working for the employer.45 This provision assumes (perhaps wrongly) that the payments to the seconded employee are taxable as employment income. |
13A.2.3 Several Employments or One Profession? |
A taxpayer may have more than one source of income. The existence of a daytime employment is compatible with the co-existence of a trade or profession46 and the activity or skill used in the employment may be the same as that used in the trade or profession. Therefore, doctors may be part-time employees of a hospital trust and carry on a part-time private practice; their pay under the former source will be taxed under ITEPA, while that from the latter will be taxed under schedule D, case II. Similarly, a barrister with a daytime income under schedule D, case II may also have evening employment as a lecturer within ITEPA.47 The premise of the case-law is that in accordance with the Schedular system of income taxation at source cannot fall into both schedules at the same time. Kerridge has argued, challengingly, that this premise is incorrect, but the argument has not been made in any reported case since his views were published.48 |
13A.2.3.1 Davies v Braithwaite, Fall v Hitchen, Hall v Lorimer |
A person may hold several offices and so be taxed under schedule E (not schedule D, case II as a profession).49 However, in relation to a series of employments, two, quite distinct approaches can be seen. In Davies v Braithwaite50 Lilian Braithwaite acted in the UK in a number of plays, films and wireless programmes. |