HMRC have released more facts and figures about those taxpayers who will be affected by the Disguised Remuneration loan charge, including a pictorial factsheet which makes interesting reading.
The Loan charge takes effect on 5 April 2019 and applies to all Disguised remuneration (DR) loans outstanding on that date, where the taxpayer has not reached a settlement agreement with HMRC.
The information now released reveals that:
- Scheme users’ income was double that of the average taxpayer’s.
- 70% of those who were in DR schemes used them for 2 years or more.
- The average user avoided at least £20,000 a year in tax and national insurance
HMRC have again reiterated the point that they have never approved tax avoidance schemes, and have always said that they do not work.
There is still time for scheme users to reach a settlement with HMRC with flexible payment options available for those who cannot pay in full upfront.
Useful guides:
Disguised Remuneration
A guide to everything you need to know about disguised remuneration schemes, the loan charge, and how to settlement with HMRC and avoid the loan charge.
FAQs for Disguised Remuneration Settlement
This guide looks at Frequently Asked Questions for settling Disguised Remuneration schemes. The FAQs relate to EBTs, EFRBS and contractor loan schemes (employed and self-employed).
Disguised Remuneration final settlement opportunity
A detailed guide to the November 2017 final settlement opportunity for all disguised remunerations schemes.
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