HMRC have published an issue briefing ‘Disguised Remuneration charge on loans’ which includes more details about time to pay for individuals who have taxable income for 2018-19 of less than £50,000, plus more details about the number of people settling and the amounts collected so far.

  • The Disguised Remuneration loan charge will apply to all loans made since 6 April 1999 if they are still outstanding on 5 April 2019.
  • The charge will not apply to outstanding loans if the individual has agreed a settlement with HM Revenue and Customs (HMRC) under existing law before 5 April 2019.

HMRC's says that more than 5,000 individuals and employers have agreed to settle their schemes and pay the tax, contributing more than half a billion pounds to the Exchequer, with a further 20,000 people registering an interest in settling their schemes.

HMRC will allow individuals to pay the tax due under a settlement agreement over a period of up to 5 years where:

  • Expected taxable income for 2018-19 is less than £50,000. 
  • They are no longer using any avoidance arrangements.

Those with higher income levels can negotiate time to pay with HMRC on an individual basis depending on their circumstances.

If you need assistance in negotiating a disguised remuneration settlement or a second opinion on settlement terms and calculations, contact our Virtual Tax Partner support team. 

Useful Links

Disguised Remuneration Zone
What to do with and how to settle Disguised remuneration, contractor loans, EBT loans. This covers:

External links
HMRC issue briefing: Disguised Remuneration charge on loans

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