HomeFWJ TakeawayTax disputesDisguised remuneration and APNsDisguised remuneration HMRC guidance

HMRC guidance on disguised remuneration is regularly updated and available online. The main body of information is contained in the updated rules under the Finance Act 2017 and the Finance Act (Number 2) 2017.

HMRC’s guidance on disguised remuneration outlines the problem of tax avoidance and the steps currently being taken to tackle the failure to account for tax on income.

  • the guidance outlines problems frequently faced when seeking to understand tax schemes, for example where an employer or a third party makes a loan and then it is transferred; or
  • where companies owned and ran by small groups of individuals seek to circumvent anti-avoidance rules by extracting assets outside of an employment relationship.

More information on disguised remuneration and the various schemes used to disguise remuneration, for the purpose of mitigating tax, can be found here. Contractor loan schemes operate in an almost identical manner to the schemes devised for standard employees.

In summary HMRC guidance will provide that any scheme set up solely for the purpose of avoiding tax payable to the HMRC will fall either within the general anti-abuse rule or within one of the tax avoidance schemes that are required to be disclosed or which may face investigation.

At Francis Wilks & Jones we have considerable experience of tax legislation and defending claims by HMRC or liquidator claims. Whatever help you need – our team has likely dealt with it before – including negotiations with HMRC regarding accelerated payment notices, any disguised remuneration scheme issues, personal liability notices, VAT security or any other claim, including appeals to tax tribunals or insolvency claims.

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