HMRC is writing to employers to give them the opportunity to settle the tax arising on employer financed retirement benefits scheme (EFRB) arrangements set up for the employees. There are two possible routes for settlement:
option 1, where no deduction is due from corporation tax profits for contributions made to the EFRBS until relevant benefits are paid out by the EFRBS; or
option 2, where PAYE and NIC are payable on the contributions made to the EFRBS. A deduction can be made from corporation tax profits for contributions made to the EFRBS.
Any settlement made will only relate to employers, so other parties, such as trustees, employees and beneficiaries, may have outstanding liabilities. Employers have until 31 December 2013 to indicate whether they would like to settle, with any settlement being concluded by 30 June 2014.
HMRC is writing to employers to give them the opportunity to settle the tax arising on employer financed retirement benefits scheme (EFRB) arrangements set up for the employees. There are two possible routes for settlement:
option 1, where no deduction is due from corporation tax profits for contributions made to the EFRBS until relevant benefits are paid out by the EFRBS; or
option 2, where PAYE and NIC are payable on the contributions made to the EFRBS. A deduction can be made from corporation tax profits for contributions made to the EFRBS.
Any settlement made will only relate to employers, so other parties, such as trustees, employees and beneficiaries, may have outstanding liabilities. Employers have until 31 December 2013 to indicate whether they would like to settle, with any settlement being concluded by 30 June 2014.
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