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I have a question regarding one of my clients.
The client was employed for the first 5 months of a tax year, earning commission which was more that 50% of the total taxable income for that period - therefore, the client could claim section 11a expenditure against the commission income.
The problem is that the client was employed for the remaining 7 months of the tax year by another employer, and did not receive commission, but a basic salary. This had the effect that if you calculate the taxable income for the entire year, the commission will not be more than 50% of total taxable income, and section 11a will not apply.
My question is can the client claim section 11a expenditure for the first 5 months of the tax year?
You urgent response will be highly appreciated.
The client was employed for the first 5 months of a tax year, earning commission which was more that 50% of the total taxable income for that period - therefore, the client could claim section 11a expenditure against the commission income.
The problem is that the client was employed for the remaining 7 months of the tax year by another employer, and did not receive commission, but a basic salary. This had the effect that if you calculate the taxable income for the entire year, the commission will not be more than 50% of total taxable income, and section 11a will not apply.
My question is can the client claim section 11a expenditure for the first 5 months of the tax year?
You urgent response will be highly appreciated.
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