Reporting loan charge information

HMRC has updated its guidance with more detail for individuals and employers on reporting balances outstanding on disguised remuneration loans at 5 April 2019 and paying the loan charge.

Details of the loan arrangements used in each tax year to be provided via the government gateway will include:

• scheme name;
• start and end dates of the schemes used;
• any HMRC case reference number issued;
• DOTAS number, if any;
• total loan amount in each tax year, including any amounts repaid or written off; and
• any amounts of tax or NIC already settled.

These details will need to be sent again with any amendments or the addition of further schemes.

Employers reporting outstanding loan balances for employees should include details on a P60. Otherwise, the following information should be notified to the employee as soon as possible:

• date of the payment (loan charge);
• amount of the relevant payment (loan charge);
• amount of tax deducted on making the payment, or notional payments; and
• amount of employee Class 1 NICs deducted on making the payment.

See bit.ly/2StLVu3.