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Disguised remuneration: HMRC invite ‘urgent comments’ by 2 September

printer Mail

More than 200 pages of draft guidance on the ‘disguised remuneration’ rules in FA 2011 were published last week. HMRC said the draft was not being published as part of a formal consultation process, but any urgent comments may be emailed to HMRC by 2 September.

The guidance will be added to HMRC’s Employment Income Manual in the Autumn. FAQs were published in February and March, and a third version setting out 60 questions and answers was published on 5 July. 

‘The issues covered by the FAQs have been included in the draft guidance but are not separately listed as FAQs,’ HMRC said.


‘HMRC want to operate the arrangements flexibly against what they see as tax avoidance arrangements and decline to offer any non-statutory gloss on how they will interpret key terms such as “earmarking” and “tax avoidance purpose” in the context of the legislation,’ Deloitte said.

‘Consequently, with some arrangements uncertainty remains over basic questions such as whether or when funds or assets contributed by an employer to a third party are to be taxed as employee reward, although employee share scheme funding arrangements appear now to be well protected by specific legislative exclusions.’