Updated guidance for those affected by changes to the Loan Charge

30 July 2020

HMRC has published guidance for any of its customers who may have been affected by recent changes to the Loan Charge.

There is detail surrounding the application process for refunds of voluntary payments, along with information on how those refunds will be calculated.  The publication also confirms what the next steps for employers should be.

The guidance is intended for those who used disguised remuneration schemes between 6 April 1999 and 5 April 2016, from which disguised remuneration loans were made, and who settled the tax due with HMRC on or after 16 March 2016 and prior to 11 March 2020. Anyone in this position, who has voluntarily paid some, or all, of the tax and National Insurance (NI) contributions to avoid the loan charge could potentially be entitled to a refund or waiver.

HMRC will write to anyone that is eligible for a refund or waiver inviting them to apply, and will provide an application form, also advising on the application process. Anyone who has not been contacted by 1 October 2020, and believes that they are entitled to a refund or waiver, should contact HMRC, either by phone on 03000 534 226, or via email at [email protected].

The sections included in the guidance are as follows:

  • Payments that can be refunded or waived
  • The application process
  • Who can apply
  • After you apply
  • Repayment decisions
  • If you accept the repayment decision
  • If you need help to apply
  • Implications for Inheritance tax

Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.