Reward Strategy account
0 £0.00
This item was added to your bag

Disguised remuneration scheme users must act now

Users of disguised remuneration schemes have until September 30 to register to settle their tax affairs with HMRC, to avoid a new tax charge in April 2019.

TwitterLinkedIn

By contacting HMRC to settle the tax of any disguised remuneration scheme now, users can agree with HMRC what they owe and if required, arrange a payment plan. Settling may also mean that the scheme user:

 

• Does not have to pay the new loan charge that is being introduced in April 2019;

• Pays a lower rate of tax on disguised remuneration loans – the loan charge will add all loans together and tax them in one year;

• Will settle on the terms in this guide – if a scheme moves to litigation, these terms may no longer be available;

• Does not face extra costs if the scheme moves to litigation.

 

Disguised remuneration schemes are designed to avoid income tax and national insurance contributions. They do this by providing an employee or contractor with a loan or other payment from a third party, such as an employee benefit trust, which is unlikely to be repaid. HMRC warned for several years that these schemes do not work and has advised against using them.

 

HMRC has released guidance on how to settle the tax charge on a disguised remuneration tax avoidance scheme for contractors, employers or employees. To start settling these tax affairs, users should register their interest with HMRC as soon as possible and provide all of the required information by 30 September 2018.

TwitterLinkedIn
Add New Comment
LoginRegister

You might also like

Changes to benefits for mixed age couples

Changes to benefits for mixed age couples


Money’s too tight (to pension)

Money’s too tight (to pension)


Flexible working flatlined since 2010

Flexible working flatlined since 2010


Will you make The Reward 300 2019?

Will you make The Reward 300 2019?

LATEST PAYROLL AND REWARDS NEWS IN YOUR INBOX

Did you find our website useful?

Thank you for your input

Thank you for your feedback

reward-strategy.com - an online news and information service for the UK’s payroll, reward, pensions, benefits and HR sectors. reward-strategy.com is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Reward Strategy is committed to diversity in the workplace.
© Copyright Shard Financial Media Ltd