NIM53150 - NICs avoidance: employment income provided through third parties: Employer Financed Retirement Benefit Schemes - trustees’ earmark employer’s contributions

Many EFRBS are established under a trust, which may be discretionary or not. For the definition of a discretionary trust, see NIM53100.

It is important to be aware of the possibility that, when an employer makes a contribution to a trust (i.e. pays an amount of money or transfers assets to trustees), the trustees may earmark (however informally) part or all of the contributions

  • at the same time as the employer makes the contribution, or
  • at any time after the employer makes the contribution.

For guidance about

  • employer contributions not earmarked for any particular employees, see NIM53100
  • earmarking see EIM45110
  • general guidance about EFRBS and the application of Part 7A of ITEPA 2003 and corresponding NICs legislation, see NIM52700.