HMRC have started issuing assessments to taxpayers who they believe should have declared the disguised remuneration loan charge on a 2018-19 tax return and have failed to do so, or who appear to have reported the charge incorrectly.

In April 2022 HMRC set out their planned course of action for dealing with failures to report the Disguised Remuneration loan charge under Self Assessment. They indicated at that stage that notices to file would be issued to anyone who had failed to file a return including the loan charge, followed by determinations where this failure continued, which could be displaced by filing a return. HMRC also indicated that they would be issuing closure notices where the loan charge had been reported but the figures appeared to be incorrect.

These current assessments, for 2018-19, are instead being issued under the Discovery provisions which cannot be displaced by simply filing a 2018-19 return declaring the loan charge. HMRC have until 5 April 2023 to issue the assessments. After that date, they will need to prove that the taxpayer was careless or negligent in order to assess the charge.

Taxpayers have 30 days to Appeal the assessments and ask to postpone the tax, or they can simply pay the tax. Late payment interest will continue to be charged in the meantime.

It is still possible to come to a settlement with HMRC in respect of the relevant Disguised remuneration scheme under the 2020 settlement terms offered by HMRC. This will not remove the loan charge liability and additional tax may be due on settlement, but it will allow taxpayers to fully resolve their affairs in relation to their disguised remuneration loans.

If you receive an assessment in respect of the loan charge and need assistance with how to deal with it contact our Virtual Tax Partner service at

Useful guides on this topic

Disguised remuneration loan charge
What is disguised remuneration? What is the loan charge? When does the loan charge apply? Will the loan charge affect me?

Disguised remuneration 2020 settlement opportunity
What is HMRC's position on disguised remuneration loans where settlement was not reached by 30 September 2020? Can a settlement still be reached?

FAQs for Disguised Remuneration Settlements
Can I just repay my loans? Which is cheaper: the loan charge or settling? How much will it cost to settle? And many other FAQs.

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