Anyone know about film partnership income?
Discussion
I am trying to understand the basis of taxation of a film partnership income, and more specifically if the income can be used for pension contributions upon which tax relief can be obtained.
I believe this is one of the HMRC approved arrangements and tax relief was granted on the initial funding.
I am told that profits are currently being distributed on an annual basis and this is taxed as declared self employed income, furthermore class 4 NI is paid on it.
My clients accountant doesn't know the answer.
It seems to me that if the income is deemed standard self employed income, just as say a plumber, then it can be used for pension contributions. But if it is somehow deemed by HMRC as investment income, even though NI is payable (the result of a court case a couple of years ago I am told) then it couldn't be used for pension contributions.
I believe this is one of the HMRC approved arrangements and tax relief was granted on the initial funding.
I am told that profits are currently being distributed on an annual basis and this is taxed as declared self employed income, furthermore class 4 NI is paid on it.
My clients accountant doesn't know the answer.
It seems to me that if the income is deemed standard self employed income, just as say a plumber, then it can be used for pension contributions. But if it is somehow deemed by HMRC as investment income, even though NI is payable (the result of a court case a couple of years ago I am told) then it couldn't be used for pension contributions.
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