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Loan charge filing barriers

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The Low Incomes Tax Reform Group (LITRG) has welcomed HMRC’s decision to allow late loan charge spreading elections up to 31 December 2020 (as published in Statement of Practice 1/2020) but has also warned of other barriers stopping people from making an election.

LITRG notes that the 30 September deadline was missed for different and sometimes complex reasons and that, on its own, the easement around spreading elections will not ‘be enough to get people moving towards complying with the loan charge’.

HMRC is urged to write to those who missed the 30 September deadline, setting out the specific information that it holds about them where loan arrangements are suspected. This could help act as a trigger or prompt for taxpayers to investigate and take the first step towards bringing their tax affairs up to date. The letters should also highlight the available help via TaxAid or HMRC’s extra support team for unrepresented taxpayers, says LITRG.

Issue: 1512
Categories: News