HMRC has issued Spotlight 41: Disguised remuneration: a Supreme Court decision. This spotlight follows on from the decision of the Supreme Court in Rangers 2012 plc.

In the Rangers case:

The Supreme Court agreed with HMRC that the payments were a redirection of earnings and were taxable and subject to NICs.

HMRC’s view is that this case applies to a wide range of disguised remuneration tax avoidance schemes, no matter what type of third party is used, i.e. whether routed through an EBT, EFRB or under a contractor loan scheme. Although not specifically referred to it is possible that it could also apply to certain payments for Image rights.

An email address is provided for taxpayers who wish to get out of such schemes and who don’t already have a contact at HMRC.

Links

Our guides:

Anti-avoidance: HMRC's spotlights

Disguised remuneration

External links HMRC's spotlight can be found here.