The move represents a change in tack by the taxman. In certain circumstances,
employers were able to make inducement payments to staff for quitting a defined
benefit scheme to join a defined contribution scheme free of tax and NI. HMRC
revealed employers have sought advice on the new tax and NI position.
Existing legislation requires the payment of tax and NI in all circumstances
where employees are paid to switch from a DB to DC scheme. HMRC will honour the
previous positions, where employees had been offered inducements to switch prior
to the latest announcement and were allowed a tax exemption.
Grant Thornton tax partner Mike Warburton said the situation is unusual, as
any cash inducement would have been liable. He also said that employees of
bigger companies handling switchovers to DC schemes are more likely to be
HMRC has won its tenth successive case against tax avoidance schemes promoted by NT Advisors. The Court of Appeal has ruled that NT ... read more
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
Since the release of HMRC’s plans for digital tax reforms, many have agreed with the call for a delay