HMRC has announced it will allow users of disguised remuneration schemes wishing to settle before the new loan charge takes effect in April 2019 to spread their payments over five years, if their taxable income in 2018/19 is estimated to be less than £50,000 and they are no longer participating in a scheme.
A new HMRC Issue briefing sets out the background to the charge, which will apply to all disguised remuneration loans made since 6 April 1999, if they are still outstanding on 5 April 2019 and the taxpayer has not agreed a settlement with HMRC.
The government estimates that up to 50,000 individuals will be affected by the loan charge, with some 65% thought to be in the business services sector and around 10% in construction.
The Issue briefing states that users of disguised remuneration schemes earn, on average, ‘twice as much as the average UK taxpayer’. Some 70% have used these schemes for two years or more.
HMRC says that since Budget 2016, when the loan charge was announced, more than 5,000 individuals and employers have agreed to settle sums amounting to ‘more than half a billion pounds of additional revenue’. A further 20,000 people have registered an interest in settling with HMRC.
HMRC has announced it will allow users of disguised remuneration schemes wishing to settle before the new loan charge takes effect in April 2019 to spread their payments over five years, if their taxable income in 2018/19 is estimated to be less than £50,000 and they are no longer participating in a scheme.
A new HMRC Issue briefing sets out the background to the charge, which will apply to all disguised remuneration loans made since 6 April 1999, if they are still outstanding on 5 April 2019 and the taxpayer has not agreed a settlement with HMRC.
The government estimates that up to 50,000 individuals will be affected by the loan charge, with some 65% thought to be in the business services sector and around 10% in construction.
The Issue briefing states that users of disguised remuneration schemes earn, on average, ‘twice as much as the average UK taxpayer’. Some 70% have used these schemes for two years or more.
HMRC says that since Budget 2016, when the loan charge was announced, more than 5,000 individuals and employers have agreed to settle sums amounting to ‘more than half a billion pounds of additional revenue’. A further 20,000 people have registered an interest in settling with HMRC.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
