Disguised remuneration reporting deadline

21 May 2020

HMRC have issued an update to highlight the reporting deadline for the Loan Charge in relation to any outstanding disguised remuneration.

Where clients have outstanding disguised remuneration loans, which are subjected to the Loan Charge, details of such loans must be reported by 30 September 2020. The loan can be reported by agents or the individual via an online form.

The online form has now been updated so that those who need to report disguised remuneration loans can now elect to spread the cost of their outstanding loan, evenly over a three-year period. Loans can now be spread across 2018-19, 2019-20 and 2020-21 tax years and the deadline to operate such an election is also 30 September 2020.

It should be noted that once an election to spread the cost has been made, it cannot be withdrawn.

The online form will need to be completed as accurately as possible and can be used to:

  • Report an outstanding loan balance for the first time

  • Resubmit information to correct inaccuracies in a previous form

  • Make an election to spread the Loan Charge balance.

If a form has already been submitted, and the information provided at the time was complete and accurate to the best of knowledge, the statutory obligation has been met. An additional form is not required to be submitted, even if the outstanding balance has changed following the Loan Charge review. However, the form will be used to make an election to spread a loan balance.

If the client does not want to spread the cost of the Loan Charge balance, but the balance has now changed following the review, the new form can be used to provide the updated loan balance.


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