Ten years of the disguised remuneration legislation

The disguised remuneration (employment income provided through third parties) rules celebrated their tenth anniversary on 6 April. When they were introduced the rules were controversial in the broad way they were structured. However they were implemented in a very different tax landscape from the one which exists now. Many of the concerns HMRC had at the time are no longer so pressing and other powers at the department’s disposal have greatly expanded.

As the ten-year milestone has been achieved it seems a good time to question whether the disguised remuneration legislation remains fit for purpose or should be given a radical overhaul.

Original target

At the end of the noughties it is fair to say that the appetite for complex tax planning was much greater than it is today. HMRC found itself fire fighting against ever more complex structures which purported to deliver remuneration in forms...