Market leading insight for tax experts
View online issue

Disguised remuneration: draft NIC regulations

printer Mail

Draft regulations creating a charge to national insurance contributions on amounts chargeable to income tax under the disguised remuneration rules have been published for comment.

ITEPA 2003 Part 7A (employment income provided through third parties) was inserted by FA 2011.  

Last week HMRC published more than 200 pages of draft guidance on the new rules and asked for any urgent comments to be emailed by 2 September.

That guidance will be included in the Employment Income Manual. It does not deal with the NICs treatment of amounts chargeable to tax under the new legislation, however, and until the regulations come into force the NICs treatment of those amounts ‘remains unchanged’.

The National Insurance Manual will be updated in due course, HMRC said.

HMRC invited comments on the draft regulations by 23 September. An explanatory note is available.

The draft guidance also excludes changes to the rules for deductions in calculating employers’ business income. The Business Income Manual will be revised for these changes in the Autumn.