DISGUISED REMUNERATION Q AND A
6 July 2011 A revised Question and Answer document has been published on the Disguised Remuneration legislation included in the Finance Bill. This version replaces the one issued on 31 March.
DISGUISED REMUNERATION DRAFT GUIDANCE
24 August 2011 This document contains draft guidance on the ‘Disguised Remuneration’ legislation included in Section 26 and Schedule 2 of Finance Act 2011. There was a formal consultation process on the draft legislation following its initial publication in December 2010. This draft guidance is not being published as part of a formal consultation process. However, if you have any urgent comments on the guidance, send them by email to pa.harris@hmrc.gsi.gov.uk by 2 September 2011. Comments received after this date may be too late to be reviewed for the publication of the guidance in the autumn but may be taken into account in considering future updates and improvements.
DISGUISED REMUNERATION LEGISLATION
7 September 2011 Draft National Insurance contributions Regulations and Explanatory Memorandum relating to the Disguised Remuneration Legislation have been published.
DISGUISED REMUNERATION – NICS REGULATIONS
11 November 2011 Regulations have been published to charge Class 1 National Insurance contributions on amounts chargeable to tax under the recently introduced Disguised Remuneration measure. The Regulations make provision for amounts chargeable to income tax under the Disguised Remuneration legislation in Chapter 2 of Part 7A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) to be treated as earnings for the purposes of NICs if they would not already be earnings for NICs purposes. They include provision to prevent a double liability for NICs on such amounts. The Regulations will come into force on 6 December 2011. Employers will need to account for Class 1 primary (employee) and secondary (employer) NICs on amounts which count as employment income under Chapter 2 of Part 7A on or after that date, except where the Part 7A charge arises on 6 April 2012 in relation to an 'early step' which took place between 9 December 2010 and 5 April 2011. Guidance on the Part 7A treatment of early steps can be found in the Employment Income Manual starting at EIM45905. The Regulations do not have retrospective effect so where there is no prior liability to account for Class 1 NICs, employers do not need to account for Class 1 NICs on any Part 7A amounts which have given rise to tax liabilities before 6 December 2011 and which have, or will be, subject to PAYE. The National Insurance Manual will be updated in due course to reflect the changes introduced by these Regulations.
CIPP Policy News Journal
09/10/2012, Page 210 of 234
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