SE12035 - Non-cash remuneration: notifying the employer

What you need to tell the employer

Following correspondence and raising of a Regulation 80 determination (seeSE12031), if the employer still does not accept that PAYE should have been operated on an award of non-cash remuneration, you should explain to the employer:

• the case has reached the stage where it seems likely it can only be resolved by a contentious hearing before the Commissioners and the Revenue is currently addressing similar cases where appeals have been made to the Special Commissioners
• the facts of the cases to be considered by the Special Commissioners are not identical to the facts in this case and the Commissioners decision will not bind either Revenue or employer but because of similarities between the cases, the decision may help to settle this case and consequently the employer may wish to save the time and cost involved in pursuing their appeal and wait for the outcome of the selected case
• if the employer chooses to wait the outcome of the selected case this does not affect his right of appeal or his right to have his appeal heard by the Commissioners later
• there is no guarantee that the decision in the selected case will help in settling this case and the Revenue reserves the right to seek a Commissioners hearing of this employer's appeal - the employer will be given notice and time to prepare his case
• if the employer's appeal is subsequently heard by the Commissioners, the Revenue will want to see any documentation relating to the scheme which has not yet been provided and so the employer should ensure no relevant information is destroyed
• it is up to the employer to decide whether he wants to wait the outcome of the selected case - you should ask for confirmation of this agreement in writing.
• If the employer agrees to wait the decision in the selected case you need take no further action for the time being. Employment Income Technical will keep Network offices informed of developments in cases of this kind - you should ensure you are able to identify appropriate cases when further guidance is received and that other aspects of the case, including assessing time limits, are not overlooked.
• If the employer chooses not to await the decision in the selected case and seeks an appeal hearing of their case technical advice is available from Employment Income Technical. Please contact Employment Income Technical before arranging a contentious hearing before either General or Special Commissioners.