Disguised remuneration schemes end users and judicial review:It is now accepted that most if not all disguised remuneration schemes involving the making of loans to employees via an employee benefit trust do not work and that the arrangements lead to an employment income charge. However there is still the question of where the liability lies. In the case of ordinary payment of salary it is the employer who is responsible for deducting PAYE. Where there is an offshore employer however HMRC cannot enforce payment and therefore the liability for PAYE falls on the end user i.e. the business for whom the employee actually carries out work. Regulations exist under which HMRC can relieve the end use of this obligation where it is unnecessary or not appropriate for the payer do so. If this happens the individual employee still had a...
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Disguised remuneration schemes end users and judicial review:It is now accepted that most if not all disguised remuneration schemes involving the making of loans to employees via an employee benefit trust do not work and that the arrangements lead to an employment income charge. However there is still the question of where the liability lies. In the case of ordinary payment of salary it is the employer who is responsible for deducting PAYE. Where there is an offshore employer however HMRC cannot enforce payment and therefore the liability for PAYE falls on the end user i.e. the business for whom the employee actually carries out work. Regulations exist under which HMRC can relieve the end use of this obligation where it is unnecessary or not appropriate for the payer do so. If this happens the individual employee still had a...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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