21 July 2021 
Julia Ascott, Employment Taxes Specialist
BUFDG’s response to the second consultation on the Government’s proposal to “uncertain tax treatment” leaned towards using existing legislation rather than enacting even more. However, knowing that consultations are often merely a pre-cursor to implementation, we commented that should the policy continue to be pursued, existing HMRC guidance must be of a suitable standard.
Whilst our initial idea may have fallen short, the consultation outcome, summary of responses (along with Government objectives/next steps) at least demonstrates that other respondents were of similar mind and also that the government heeded some of our warnings. There is particular focus on ensuring HMRC guidance is up to date and fit for purpose given that non-adherence to these rules is a trigger point for notification.
The policy paper, draft legislation and supporting explanatory note (last two pages of the latter are best to read if you are short of time) were published at the same time as the consultation outcome.
The summarised rules:
