HMRC have once again updated their guidance on the loan charge being introduced in April 2019 and how to settle with HMRC.
The Loan Charge will apply to all disguised remuneration and contractor loans outstanding on 5 April 2019 unless a settlement is agreed with HMRC before that date, and HMRC had already updated their guidance on extended payment terms for those with taxable income below £30,000.
Now they have provided yet more clarification on the settlement process:
- Anyone who has registered an interest in settling should expect to hear from HMRC within 4 to 6 weeks. Nobody will be disadvantaged if they provided the relevant information by 5 April but have not been able to settle due to HMRC delays.
- People who registered before 30 September and sent the required information should receive a calculation by the end of February 2019.
- HMRC will not force anyone to sell their main home to pay their settlement tax liabilities.
- Insolvency will only be considered as a last resort when scheme users are at risk of racking up further debt or they are actively avoiding paying what they owe; HMRC say they do not wish to make anybody bankrupt.
Anyone who has not yet registered to settle their scheme and wishes to do so is advised to contact HMRC as soon as possible.
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).
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