HMRC receive influx of incorrect ‘Disguised Remuneration’ Full Payment Submissions
17 October 2019
In the most recently published bulletin, HMRC has advised that it has received numerous Full Payment Submissions (FPS) from employers in relation to Disguised Remuneration payments.
There is guidance around the correct reporting of Disguised Remuneration payments here.
The only scenarios where loans should be reported are where employees have been paid in the form of a loan to escape attracting tax and National Insurance liabilities, or where loan amounts are outstanding and subject to the ‘loan charge’.
If an employee receives a cash advance or a genuine employee loan which will be paid back in its entirety, this is not classed as ‘Disguised Remuneration’ and so shouldn’t be reported under this umbrella.
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