Tax avoidance loan schemes and the loan charge
08 November 2018
Loan schemes - otherwise known as ‘disguised remuneration’ schemes - are used to avoid paying Income Tax and National Insurance.
Anybody who wants to settle and who hasn’t already contacted HMRC should do so immediately.
To stand the best possible chance of settling people should get in touch with HMRC and send all the required information as soon as possible. This will provide the best chance of reaching a settlement before the loan charge arises on 5 April 2019.
HMRC aims to make it simple for people and will help anybody who wants to get out of these schemes. There are a range of flexible payment options for those who want to settle ahead of the loan charge but who may have difficulty paying what they owe.
This policy paper sets out:
How loan schemes are used to avoid paying tax
What the loan charge and who it affects
The support HMRC is giving to people to get their tax affairs in order