07 December 2023

HM Revenue and Customs (HMRC) has released draft regulations and technical guidance for how disguised remuneration tax liabilities can be transferred from a company to the individual.

It details the process and lays out the three scenarios where it could be applied:

  • the employer no longer exists
  • the employer is offshore
  • the employer can’t pay the liability.

Much of the legislation to make this possible is already in place, however 2 annex documents lay out additional draft regulations that will be required.

While these powers should only be relied on in extreme circumstances, HMRC is keen to collect outstanding liabilities and puts the onus on employees to understand, spot and report where they are involved in a disguised remuneration scheme.

Additional loan charge information is also included.

HMRC also state the guidance will be fully updated in early 2024, so if this is of interest to you, keep an eye out for future changes.

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