paying tax if not working

[william-m]

Hi all first post on here.

My work is going through a difficult patch just now and they have asked everyone to take a week off work with pay.
but this is only a loan and we would need to pay it back. everyone is in agreement to this but only if we're paid our weekly net and not gross.

the work was ok with this but now their saying the inland revenue is saying it cant be done we need to pay our taxes and ni.

now surely if im taking a week off work and not earning anything i shouldn't be paying taxes and ni

the work will give me a loan of £350 which i'll pay back so that doesnt count as an earning does it??

[Zeno]

If it is truly a loan (and not just an amount that will be written off later) then tax should not come in to it other than it possibly being a taxable benefit.

It seems a strange arrangement to me though.

[Jenni384]

If it is truly a loan (and not just an amount that will be written off later) then tax should not come in to it other than it possibly being a taxable benefit.

It seems a strange arrangement to me though.

I'd agree with this too.

HMRC are trying to get more tax, that's what they do.
If it's genuinely a loan, then it's a loan and that doesn't get taxed as normal wages.

[william-m]

yes it is a loan and wont be written off so there is no way we're paying tax on

i know its a stange set up but it would save the company a few hundred thousand because their not going to be paying 800 staff a weeks wage for the week off.