Disguised Remuneration – National Insurance GuidanceSaturday, November 12th, 2011
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.
- 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