SE12031 - PAYE avoidance: dealing with open PAYE cases
Dealing with open PAYE cases
Employment Income Technical is aware of cases where employees have been provided with non- cash remuneration in the form of:
| Units (usually in an unit trust) | Government securities |
| Fine wines | Gold bars |
| Reversionary interests in an offshore trust | Platinum sponge |
| Gold jewellery | Diamonds |
| Life assurance premiums | Oriental carpets/Persian rugs |
| Fine art | Gold coins |
| Assignment of trade debts | Rhodium |
| Bank accounts denominated in ECUs | Shares |
| Options over any of the above assets | Vouchers over any of the above assets |
If you see any other forms of non-cash remuneration, especially in 1998/99 or a later year, Employment Income Technical should be informed immediately.
Open cases with outstanding PAYE appeals
For cases involving non-cash remuneration, you should raise a
Regulation 80 determination on the amount involved (see EP3850
onwards).
At the same time you should obtain all the facts and
documentation relevant to the award of non- cash remuneration and
explain to the employer that the Revenue regards the asset as a
readily convertible asset (or tradeable asset for awards before 6
April 1998). Where employers continue to resist the obligation to
operate PAYE they will inevitably appeal against the determination.
You should acknowledge the appeal and, assuming the case is
one of the types listed above, explain to the employer that the
Revenue is aware of similar cases and intends to litigate a small
number of representative cases (see
SE12030).
Until these cases are decided the Revenue does not wish to
pursue similar Regulation 80 appeals - seek the employer's
agreement to this course of action. If the employer agrees to await
the outcome of the selected case you should keep the employer
informed by providing updates every six months or so.
For the alternative treatment of these awards of non-cash
remuneration under Schedule E see
SE12032.
Selected cases NOT test cases
Please note that the small number of cases selected for litigation are NOT test cases. That term has a technical meaning which does not apply in these circumstances.
