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HMRC internal manual

Trusts, Settlements and Estates Manual

Trusts for particular purposes: new employer sick pay scheme

What to ask the trustees

The employer’s tax office may be the first to become aware of a new sick pay scheme. That office should ask the trustees for the following information.

  • Has the trust received income or acquired chargeable assets?
  • If not, is it likely to do so in the future?


Answer to both questions is ‘no’

If the answer is ‘no’, to both questions, advise the trustees they do not need to complete annual returns. Also remind them of their obligation to notify any future chargeability to tax (TMA70/ Section 7).

The instructions in the SA Manual are at ‘records/ set up taxpayer records/ when to set up a trust SA record/ new trusts with no income bearing assets’.


Answer to a question is ‘yes’

If they answer ‘yes’ to either question deal with as a new employee benefit trust (TSEM5050).