Disguised Remuneration – National Insurance Guidance

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Regulations were published on 11 November which provides that, where earnings are subject to income tax under the Disguised Remuneration legislation in Chapter 2, Part 7A of ITEPA 2003, they are also to be treated as earnings for National Insurance Contributions (NICs).

The Regulations are effective 06 December 2011 and are not retrospective.  Employers do not have to account for either Primary or Secondary NICs on any Part 7A amounts before this date where they have, or will be, subject to tax via PAYE.

Further Information

• Social Security (Contributions) (Amendment No. 5) Regulations 2011
• HMRC Employment Income Manual Disguised Remuneration Guidance
• Payroll Help 07 September 2011 – Disguised Remuneration and Employer PAYE Liabilities

Tags: Disguised remuneration, ITEPA 2003, NICs

This entry was posted on Saturday, November 12th, 2011 at 09:00 and is filed under Disguised remuneration. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.