What is the role of the Inland Revenue?
The nature of an employee’s contract of employment is a matter for the employer and employee. The Inland Revenue’s interest is in determining how the tax and NICs legislation applies to the various elements in the employee’s remuneration package. Many payments and benefits are treated in the same way for both tax and NICs. But, in some cases, where a particular benefit may be exempt from tax and/or NICs or subject to Class 1A NICs, the tax and NICs outcome will be different. Where a salary sacrifice has been put in place for the purpose of converting cash pay that is subject to tax and Class 1 NICs to a benefit that has a different tax/NICs treatment, the Inspector of Taxes has to satisfy himself that the salary sacrifice is effective. The effect of the contractual change must be that the employee has given up the right to some of their cash pay in return for the benefit. Only then can the Inspector deal with the benefit under the relevant employee benefits legislation. This is particu
Related Questions
- Ive heard that the Internal Revenue/ Inland Revenue tax XE "taxes" the profits in a home-office under Capital Gains Tax XE "Capital Gains Tax" regulations when you sell your house. Is this true?
- Are scanned documents admissible to HM Customs and Inland Revenue?
- Do the powers follow the former Inland Revenue or VAT models?
