This note follows up the note that we produced on 23 August 2004.
Employment products
We have had further discussions with the Revenue regarding the wide definition of employment products and the need to introduce an additional “filter” to focus the disclosure requirements on schemes that the government is interested in. The Revenue do understand the problem and are believed to be considering what parameters might be included in any additional filter. Transitional provisions
In certain circumstances, disclosure under the new rules has to be made by the taxpayer rather than by the promoter of a scheme. Broadly, this is where the promoter is outside the UK or where there is no promoter (FA 2004 ss309, 310).
The transitional rules appear to require that where a taxpayer has to disclose a scheme made available to him between 23 April and 31 July, this must be done by 31 October (SI 2004/1864 Reg 6). It is understood, however, that this was not intended and that, in the case of an individual, disclosure in the tax return (by 31 January) is what is required. In the case of a company, the scheme should be included in the relevant CT 600 return. It is hoped that the Revenue will confirm this shortly.
In the case of an employer where a tax advantage is expected to arise to any person from an employment product, disclosure should be made on the P35.
Technical Department
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