HMRC to firm guidance on acceptable employer contributions

Since A-Day the issue of employer contributions has been confused following HMRC’s switch to rules, now set out in the Business Income Manual (BIM), which state contributions are only allowable if they are proven to be “wholly and exclusively” for the purpose of business. However the rules have been described as both vague and confusing for both IFAs and advisers, and the industry has been consistently asking the revenue for more guidance as to what contributions can and cannot be allowed. Examples of parts of the guidance which are causing confusion include the need to know what “the t...