Market leading insight for tax experts
View online issue

Updated loan charge guidance

printer Mail

HMRC has updated its guidance document HMRC issue briefing: settling disguised remuneration scheme use and/or paying the loan charge. Various sections are either added or updated, clarifying existing practice in relation to the loan charge. Points to note include:

  • Where taxpayers elected to spread the loan charge over three years, but have not filed their 2020–21 tax return, a determination can be issued which HMRC says: ‘enables HMRC to pursue an estimated amount of tax as encouragement to customers to file their outstanding return and pay what is due’.
  • A new section Plans for April 2022 to March 2023 notes that HMRC intends to start bringing cases where taxpayers did not declare the loan charge but were expected to do so to a conclusion through contract settlements and closure notices. Where taxpayers are subject to the loan charge and still have DR scheme use to resolve, HMRC will continue to take compliance action in relation to the year in which they used DR. This could, says HMRC, include taking action to protect HMRC’s position including via enquiries and assessments.
Issue: 1572
Categories: News