New charge on outstanding disguised remuneration loans

[Fred Bloggs]

It's just how HMRC and HMT like it...divided and splintered groups are weak and offer little resistance.

That's right. More tea and biscuits anyone?

[Fred Bloggs]

Well I've asked them outright on their forum. If they aren't going to speak up or support then I'll simply cancel my subs as they are useless to me.

Today? I haven't seen anything and can't recall anything recently.

[convict]

Today? I haven't seen anything and can't recall anything recently.

IPSE response to budget thread

[Fred Bloggs]

IPSE response to budget thread

Ah, OK. Not read that thread at all. Thanks.

[LandRover]

Ah, OK. Not read that thread at all. Thanks.

Do you need to be a member to read it?

Can you post on here the synopsis of how IPSE responded?

Thanks

[Fred Bloggs]

Do you need to be a member to read it?

Can you post on here the synopsis of how IPSE responded?

Thanks

They haven't, yet.

[Whysoserious]

Tax charge falls on employer not employee... detail no 15

If you read the technical notes in full, point 15 states the new tax charge falls on the employer, not the employee. Similar to the recent findings in the Rangers (Murray) tax case.

"15. Since the new charge will be part of Part 7A the charge will fall on the relevant employer in the first instance."

Wonder how the scheme providers / employers will react to this?

[TheDandy]

If you read the technical notes in full, point 15 states the new tax charge falls on the employer, not the employee. Similar to the recent findings in the Rangers (Murray) tax case.

"15. Since the new charge will be part of Part 7A the charge will fall on the relevant employer in the first instance."

Wonder how the scheme providers / employers will react to this?

The ones who haven't liquidated or the ones holed up in Panama?

[carling]

If you read the technical notes in full, point 15 states the new tax charge falls on the employer, not the employee. Similar to the recent findings in the Rangers (Murray) tax case.

"15. Since the new charge will be part of Part 7A the charge will fall on the relevant employer in the first instance."

Wonder how the scheme providers / employers will react to this?

However

PAYE regulations

12.Some schemes involve creating an entity, sometimes offshore, as the ‘employer’, solely for the purposes of the avoidance scheme. The government will broaden HMRC’s transfer of liability powers, contained with the PAYE regulations, so that in specific circumstances the liability can be transferred from the employer to the individual if it cannot reasonably be collected from the employer.

13.It is important to maintain sufficient safeguards so that the liability is not transferred to the individual in inappropriate circumstances. The detail of the changes to the transfer of liability rules will be included in the consultation over the summer.


Collecting tax on disguised remuneration payments

2.Many of the changes result in a charge being levied under Part 7A. In the majority of cases this means that the charge is collected through PAYE from the employer who was party to the avoidance scheme. NICs would also normally be collected from the employer.

3.However, the government will amend the PAYE regulations to allow, where appropriate, for the tax and NICs to be collected from the employee where it cannot reasonably be collected from the employer. A consultation on these amendments will form part of the wider consultation over the summer.


"the government will amend the PAYE regulations to allow, where appropriate" - will certainly mean any scheme where they can't collect from the employer, becuase they have vanished/folded etc.

[LandRover]

PAYE regulations are to be amended as well...let off for scheme providers as they can wind themselves up, and the employee will be chased, hounded for money.

Welcome to the stasi state that Cameron, Osborne and Gauke are creating.