HMRC webinar on disguised remuneration and the loan charge
10 July 2019
HMRC is running a webinar on 12 July about disguised remuneration and the loan charge. It’s been designed to help people understand what their reporting requirements are under the loan charge legislation.
Disguised remuneration schemes are schemes which pay users their income in the form of loans. The loans were never intended to be repaid, so they are no different from normal income and are taxable.
The charge on outstanding disguised remuneration loans – known as the ‘loan charge’ - was introduced to tackle the use of disguised remuneration schemes and came into effect on 5 April 2019. The charge applies to all loans made since 6 April 1999 if they are still outstanding on 5 April 2019 and the recipient has not settled the tax due.
Since the loan charge was announced at Budget 2016, HMRC has agreed on settlements on disguised remuneration schemes with employers and individuals worth more than £1 billion. Around 85% of this came from settlements with employers and 15% from settlements with individuals.
HMRC has always stated that these schemes, which seek to avoid tax and NICs, don’t work and urged people to come forward and settle their tax affairs before the loan charge arose on 5 April 2019.
The webinar will look at what the loan charge means for those that are subject to it and associated compliance activity. Anyone who registers will be able to ask questions in advance and on the day.
This webinar will be useful to tax agents and anybody else who has an interest in disguised remuneration. To find out more and to join the webinar on 12 July at midday, you can sign up and register here.
There is further guidance on reporting and accounting the disguised remuneration loan charge on GOV.UK.