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Anti-avoidance provisions were introduced by the Finance Act 2011¹ which target arrangements that use trusts and other vehicles that reward employees in ways that seek to reduce the tax and National Insurance contributions payable by disguising what is in substance remuneration. The provisions are described in detail in E4.1051–E4.1065.

It should be noted that the disguised remuneration legislation operates as an addition to existing employment income and PAYE legislation, ie the original legislation would always be HMRC's first port of call. For example if an employee decides personally to 'apply' or direct their income to be paid a certain way or to a third party, this does not usually change the original PAYE obligation. For an example of an 'application of income' see the case of Heaton v Bell referred to in E4.402. Also, in the much-publicised Rangers EBT case², the Supreme Court found in 2017 that payments, which the individuals had agreed should be directed to employee benefit trusts held in the name of themselves or their families, were clearly a reward for performing