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Employers are being given the chance to settle open enquiries into the use of employee-financed retirement benefit schemes (EFRBS) arrangements by agreement and without needing to take part in litigation.
Firms have until 31 December 2013 to consider the two options offered by HMRC:
Employers are being given the chance to settle open enquiries into the use of employee-financed retirement benefit schemes (EFRBS) arrangements by agreement and without needing to take part in litigation.
Firms have until 31 December 2013 to consider the two options offered by HMRC:
- No deduction due from corporation tax profits for contributions made to the EFRBS until relevant benefits are paid out by the scheme.
- PAYE and National Insurance are payable on the contributions. A deduction is made from corporation tax profits for contributions made to the scheme.
Employers that choose to settle will have until 30 June 2014 to finalise the arrangement. Every case will turn on its own facts, said the Revenue, which has published answers to frequently asked questions.
Alastair Kendrick, tax director at MHA MacIntyre Hudson, said, “It is clear that employers… will need to take a step back and decide which option is the most relevant given their tax position.”
