Disguised Remuneration

Disguised remuneration is a method of tax avoidance used by both employers and employees to evade their tax obligations under the guise of reduced income. People who disguise remuneration would do so under the pretence of payment being a loan, which they have no intention of paying back. As a loan isn’t taxable income, they would then be getting payment for work without paying tax on it.

The government has recently cracked down on this, issuing penalties and tax charges to those who have been caught partaking in this scheme. Loans can also now be registered as a benefit in kind, which is taxable.

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