Revenue in NI contributions clampdown
The Inland Revenue is bidding to clamp down on remuneration schemes it claims have contributed to up to £1bn worth of national insurance contribution avoidance.
It is part of a new drive that will see 8,000 cases being chased by the Revenue where it feels NIC payments were avoided between 1985 and 1998, according to the Financial Times
Instead of paying cash to employees, the schemes would offer bonuses in the form of fine wines, rare metals and expensive carpets.
It is further evidence of the Revenue’s clampdown on tax avoidance which was announced in the April Budget. It has secured an extra £66m worth of funding in order to regain £1.6bn in lost tax receipts over the last three years.