.png)
.png)
02 September 2011
Consultation closes on 23 September
Draft National Insurance contributions (NICs) regulations relating to the disguised remuneration rules have been published.
They provide for amounts chargeable to income tax under ITEPA 2003, Part 7A Ch 2 to be treated as earnings for the purposes of NICs, if they would not already be earnings for such purposes.
There will be two aspects of the income tax treatment of amounts chargeable under Part 7A that will not be fully aligned with the corresponding NICs treatment:
- Amounts deriving from duties of an employment performed overseas or with an overseas employer and chargeable to income tax on the remittance basis by virtue of ITEPA 2003, s 554Z9 or s 554Z10, will be liable to Class 1 NICs on the value of the relevant step when it is taken.
- Amounts chargeable under Part 7A Ch 2 that subsequently attract income tax relief under s 554Z14 (relief where earmarking is not followed by a later relevant step) will not attract corresponding NICs relief.
Comments or question on the draft regulations should be directed to PA Harris by 23 September. Email via HMRC’s dedicated webpage, or write to HMRC, Employment Income Policy Team, Room 1E/07, 100 Parliament Street, London SW1A 2BQ.
