UK tax rules warning

Friday 21st January 2011, 3:00PM GMT.

Ernst & Young’s John Mackay (on right) at the Disguised Remuneration seminar with tax director Neil Oliver

LOCAL firms which provide employee benefit services could be hit hard by new tax rules soon to be introduced in the UK.

The new laws designed to scoop up tax from ‘disguised remuneration’ are likely to have far-reaching consequences for wealth management professionals, according to a leading tax expert.

And the industry has been urged to lobby for changes to ‘draconian’ provisions while the law is still in draft form.

John Mackay of accountancy firm Ernst & Young expressed his views about the new rules – which are due to come into force in April – to an audience of about 100 industry professionals at a seminar held earlier this week.

Read the full story in the Jersey Evening Post.

Click here for subscription details.

Individual editions are also available online.

1
Blair Peach

January 21, 2011 at 3:17 pm

Of course HMRC are cracking down on it. A lot of the schemes are disguised remuneration to avoid/postpone paying NI and tax. Its not really the kind of business that Jersey’s finance industry should be touting for. It just gets the back up of foreign treasuries and losses us allies in those countries.

Report abuse
2
Overpopulated

January 21, 2011 at 4:07 pm

This is the sort of thing that is going to be targetted by the UK and other locations who are desperate for tax revenue.

There is not much sympathy in the UK for what many people regard as tax havens sheltering overpaid footballers etc from UK tax.

Report abuse
3
Pip Clement

January 21, 2011 at 4:20 pm

The current policies of the Coalition government include a VAT rate of 20%, rises in duty on fuel, higher taxes and National Insurance.
They are planning on shedding 490,000 public sector staff and cutting the UK budget by 20% over the next four years.
Thousands of police officers, whole areas of the armed forces, libraries, parks, schools, universities and more are going to be closed.
Against that background does anyone think that they will care a tinker’s cuss for the severe impact on wealth management professionals bought on by ending disguised remuneration?

Report abuse
4
Mark

January 23, 2011 at 11:01 am

100 industry professional staring redundancy in the face?

Report abuse
5
428 CJ

January 24, 2011 at 11:13 pm

Interesting – on the one hand the FSA is ordering banks to defer compensation but on the other HM R&C are attacking the structures set up to deliver it. I would be concerned about the UK’s ability to continue to attract the financial services professionals now compared to say some Swiss Cantons and I guess when the financial services industry shrinks the Jersey economy will shrink in tandem. Where is the voice of Jersey Finance in all this ?

Report abuse
6
scouser

January 27, 2011 at 4:07 pm

Eh! just back from me crimbo celebrations to hear the news from the land for the bewildered. It’s crackin’ news!! It’s about time DC got to grips with these ofshore wheezes, gongs and whistles. When I leave Jersey I want to be assured that the Eng-er-land is not being short changed by the offshore EBT peddlers. C’mon DC my son

Report abuse