Manually calculate deductions due on the loan charge

05 April 2019

HMRC has published guidance on how to manually calculate the Income Tax, National Insurance and student loan deductions due on the disguised remuneration loan charge.

 

The loan charge arises on 5 April 2019 in the final pay period of 2019.

 

When you report your employee’s outstanding disguised remuneration loan balance you may need to use HMRC’s Basic PAYE Tools (BPT) to send an Earlier Year Update (EYU) submission.

 

You’ll need to calculate the tax, National Insurance and student loan deductions due. If your current payroll software product cannot perform these calculations for you, you’ll need to use the manual tax, National Insurance contributions and student loan tables.

 

For full details see the new guidance from HMRC on how to manually calculate deductions due on the loan charge.