The government has announced a package of changes to the Disguised Remuneration Loan Charge, this follows the conclusion of Sir Amyas Morse’s independent review of the loan charge policy and its implementation.

The key changes are that the Loan Charge:

Changes to payment schedules

Taxpayers can now elect to spread the amount of their outstanding loan balance (as at 5 April 2019, recalculated in line with the above changes) evenly across 3 tax years: 2018 to 2019, 2019 to 2020 and 2020 to 2021. This will give greater flexibility when the outstanding loan balance is subject to tax and may mean that the loan balance is not subject to higher rates of tax.

There are also number of changes that will give taxpayers additional flexibility over the way they pay:

Outstanding settlement and tax returns

If you have not filed their tax return, or agreed a settlement with HMRC, you should submit a Self Assessment tax return for the 2018 to 2019 tax year.

Legislation to enact the above changes will be put to parliament in 2020.

For further details see HMRC Disguised Remuneration Guidance

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