So employees will be able to enter into an agreement with their (corporate) employers to give up certain employment rights in exchange for a free issue of shares with a market value of £2,000 (see S.27 growth and Infrastructure Bill).
So how do they get valued? What happens if some smart arse later established that the value was incorrect and they were only worth £1,999? Agreement nul and void? Employee gets their rights back?
What about the tax consequences?
The employee is receiving money's worth taxable under S.62 and there's no exemption, but presumably the company gets a CT deduction.
Assuming the shares are an RCA, am I right in thinking that there's no PAYE or NI and it's just reported on from 42 and the employee's own Tax Return.
What happens if HMRC then dispute the valuation?
Is it possible to agree valuations with HMRC up front?
- carry back of gift aid 45 1
- What quality paper do you use for correspondence? 675 18
- Dress code 1,175 26
- Joining the flat rate scheme retrospectively 662 8
- Scottish Independance 437 13
- How to complain about HMRC 907 12
- French Excise Duty - Help Please! 323 8
- VAT Flat rate scheme for property management company 70 2
- NOMINAL CODES 310 4
- Do HMRC automatically close inactive PAYE schemes? 162 2
- Recommendations for Ross Martin Tax Consultancy 2014 699 5
- VAT on goods never entered the UK 277 9
- Interest relief before property is rented out 225 4
- Which company is best for online new company formation? 366 7
- What is the best practice for running a roofing company in Sage 422 9
- Sharing of Fixed Assets 97 1
- Quickbooks losing VAT return data 246 1
- CIC Tax - what is trading? 333 12
- How much did you pay for your website 1,605 27
- Dividend 438 6
- CTA study material 746
- Anyone have clients that use Pay4Later to offer customers credit? 460
- Raiders of the Lost Tax File 339
- Employment related securities question 298
- AIM Stocks and IHT 273
- Tax Relief for overseas employees 243
- Expat pension contributions? 235
- Trust for Employee 226
- IPP (International Pension Plan) income 140
- Wind Turbine - Company or not? 129