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HMRC have updated their Spotlights page on tax avoidance schemes to draw attention to the department’s recent First-tier Tribunal victory in the LM Ferro Ltd case, which involved an attempt to make a gratuity in the form of restricted shares in another company.
HMRC have updated their Spotlights page on tax avoidance schemes to draw attention to the department’s recent First-tier Tribunal victory in the LM Ferro Ltd case, which involved an attempt to make a gratuity in the form of restricted shares in another company.
A bonus was paid to the employee in the form of an award of shares that the taxpayer claimed was not liable to income tax and National Insurance (NI). The tribunal agreed with the Revenue that the arrangement amounted to money rather than shares and was chargeable to tax and NI.
The tax authority state expects taxpayers who used the scheme and similar ones to make full payment of tax and NI contributions due, plus interest. Companies and employees affected should contact HMRC on 03000 532624 to settle their liabilities and prevent additional interest accruing.
