Disguised remuneration rules
October 2011
• Some EOA members have been forced to review their employee ownership arrangements following the introduction of the wide-ranging "disguised remuneration" anti-avoidance provisions (see earlier Whitehall Updates). HMRC has now published detailed draft guidance on the disguised remuneration rules.
• Changes will be made to ensure that rewards and loans etc charged to income tax under the disguised remuneration rules are equally taxed as earnings for NICs purposes. HMRC has published draft regulations together with a draft explanatory memorandum.
• HMRC Spotlight 12 warns that new tax avoidance schemes claiming to get around the disguised remuneration rules do not work and that it will challenge such arrangements.