New legislation to tackle disguised remuneration

KEY POINTS

• The contentious nature of recent provisions relating to employment income provided through third parties.
• Decisions in recent cases dismissed claims that employees should be subject to PAYE and National Insurance on employment benefit trusts.
• Failure to repay loans by April 2019 will result in a liability.
• The retrospection principle was acknowledged but not discussed in committee stage.
• The government’s protocol states that retrospective changes should be ‘wholly exceptional’.
• Will there be a legal challenge to the latest provisions?

Like many a good read Finance (No 2) Act 2017 which recently received royal assent contains some interesting plotlines. Those so curious to look (tinyurl.com/ycfjbr2h) will require genuine stamina and a flask of strong coffee to navigate their way through a document that is...