Thank you for your quick reply. I would like to clarify the answer with you. I am an interpreter who whenever is required to give evidence for the prosecution in courts claims expenses back. On www.cps.gov I found the following information :
"Loss of earnings – self-employed persons (Ordinary Witnesses only) The maximum amount of earnings lost that may be repaid is: For an absence from work not exceeding 4 hours £42.95 For an absence from work exceeding 4 hours £85.90 Payments to compensate for temporary loss of profits are taxable as receipts of a business"
I do not fall into the category of an ordinary witness and I am not based in England. The COFPS is the prosecuting body in Scotland where I live, however, I can not find any relevant information on their website. Does the information underlined by me not mean that part of the witness payment is a taxable income?
I meant the COPFS, Crown Office and Procurator Fiscal Service. I am sorry for the typo.
It is interesting indeed. As you said in your earlier message payment to a witness compensate for travelling and subsistence expenses as well as loss of earnings. The staff at the Crown Office make all calculations and I later receive a cheque at home. If the loss of earnings is the only taxable element I am unable to calculate what percentage of the payment should go towards the taxable income.
I am definitely going to enquire about it at the local tax office. However, by tomorrow I have to send my on-line tax return for 2012-2013 and I am unsure if I should include the income on my tax return form. What do you recommend I do?
I hope you have a good time in New York.
In my view it is a allowance and outside the scope of tax as I said earlier save for the loss of earnings. I would be inclined, as you can't identify that element to omit it, but write a letter to the tax office seeking guidance. It is cold in NYC, snow on the ground for over a fortnight and no sign of it going.