HMRC have been contacting individuals with disguised remuneration loans to see if they wish to conclude settlement of their tax liabilities ahead of the loan charge deadline of 30 September 2020.

HMRC had previously stated that scheme users such as employees and contractors must have registered for settlement before April 2019 and then provide information on a timely basis often by HMRC set deadlines, to avoid the loan charge.

With the loan charge deadline having been extended from October 2019 to September 2020, it seems HMRC are still open to settling cases and have been calling taxpayers to discuss this with them. It would appear that this only applies to those taxpayers who met the 2019 registration deadline but have still not fully concluded a settlement with HMRC.

With some loans now being out of scope for the loan charge i.e. those taken before 9 December 2010 and in some cases, those taken before 6 April 2016, settlement calculations previously provided by HMRC may now need to be revised, therefore anyone who does still wish to settle should act now to meet HMRC's 30 September deadline.

Links

Disguised remuneration loan charge (subscriber guide)
What is disguised remuneration? What is the loan charge? When does the loan charge apply? Will the loan charge affect me?

Disguised Remuneration final settlement opportunity
A guide to reaching a settlement on disguised remuneration schemes under the 2017 final settlement opportunity.

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