Edition 1st
Publication September 2020
Length 300pp (est.)
Suitable for Tax advisers
Price 85.00
ISBN 9781912386352

Disguised Remuneration

£85.00


Disguised Remuneration and the Loan Charge

The taxation of income paid through a third party

This book will be published by early September 2020. It may now be ordered, in which case immediate payment will be taken. The book will be sent out as soon as it is available.

This work explains the practical application of a body of tax legislation that was first enacted in 2011, and that has been amended or re-enacted in most subsequent years. The legislation has had a devastating impact on many of the more than 50,000 participators in the schemes, who have ended up much worse off than if they had never entered into the scheme in the first place, even though in reality they often had no choice but to do so if they wanted to accept the remunerative work on offer.

Although formally headed "Employment income provided through third parties", the scope is in reality much wider and can give rise to charges to tax and NIC even if no employment income is received by the employee. The charge also extends to close company directors and even to self-employed contractors.

  • background to, scope of, and application of the disguised remuneration rules;
  • year-by-year development of the legislation since 2011;
  • calculation of charges on employees and traders;
  • exclusions from those charges;
  • avoiding the traps;
  • background to, and application of, the 2019 loan charge;
  • knock-on effect of that levy.
The House of Lords described the legislation as "extremely complex and beyond the scope of most business people to decide whether or not it applies to them". This work is aimed squarely at professional advisers and aims to bring clarity to what Keith Gordon describes in the foreword as a clear contender for the worst legislation ever enacted.

David Pett is a tax barrister at Temple Tax Chambers in London. Read more here.

Part 1 The Disguised Remuneration Rules
  • Introduction and background
  • The main case
  • Relevant steps
  • The close companies case
  • Exclusions from the DR charge
  • Other pension-related exclusions
  • Other exclusions
  • The charge to tax
  • Death
  • Reliefs against double taxation
  • Disguised trading income of the self-employed
  • Employer undertakings in relation to retirement benefits
  • Restrictions on income tax and corporation tax reliefs
  • Liabilities to inheritance tax in relation to the use of trusts in DR arrangements
Part 2 The 2019 loan charge and its aftermath
  • The 2019 loan charge
  • After the loan charge
  • Other HMRC actions in response to DR schemes

Disguised Remuneration and the Loan Charge