CWG2: further guide to PAYE and National Insurance contributions
26 April 2018
The CWG2 has been updated to reflect the introduction of the ‘2019 loan charge’ which will arise at the end of 5 April 2019 on the value of any outstanding loans made in the past to employees via third parties to which Pt 7A of ITEPA (disguised remuneration) would have applied.
2019 Loan Charge
An Income Tax charge will arise at the end of 5 April 2019 on the value of any outstanding loans made in the past to employees via third parties to which Pt 7A (disguised remuneration) would have applied. Where tax due on the full amount of the loan has been paid by this date, the loan charge will not apply.
If an employee has received such a loan between 6 April 1999 and 5 April 2019, it is necessary to consider whether Pt 7A would apply to the loan as if it had been made on 5 April 2019. If it does, a relevant step is treated as being taken on that date for any outstanding balance of the loan.
In order to calculate the outstanding balance, it is necessary to apply certain rules.
Full details of these can be found in HMRC’s Employment Income Manual.