No extension to the Loan Charge deadline

14 September 2020

In a written response to a question relating to the Loan Charge, Financial Secretary to the Treasury, Jesse Norman has confirmed that the government does not have any intentions of extending the Loan Charge declaration deadline, and it remains as 30 September 2020.

Individuals must confirm, to HMRC, where they had disguised remuneration loans that are subject to the Loan Charge, by 30 September 2020, at the very latest. Those who are subject to the loan charge, who have not yet filed their tax return or agreed a settlement with HMRC are required to submit a Self-Assessment tax return for the tax year 2018-19 with details of their outstanding disguised remuneration loans. The option was provided to either submit the return for 2018-19 by 31 January 2020, providing a best estimate of the tax due, or alternatively, to file by 30 September 2020. Any penalties for late filing and payment of the tax return for 2018-19 will be waived by HMRC as long as the return is filed by the end of September 2020. There will be no late payment interest applied for the period from 1 February 2020 to 30 September 2020, provided that a return is filed accurately, and any tax paid, or an agreement made with HMRC to do so, by the September deadline date.

The announcement was made by HMRC that the deadline would be extended from 31 January 2020 to 30 September 2020, back in December 2019. Mr. Norman stated:

“This deadline has long been established and the extension has given taxpayers an additional eight months to file their returns and decide whether to make an election to spread their Loan Charge liability over three years. Loan Charge taxpayers are able to file a full and accurate 2018/19 Self Assessment return by the 30 September 2020 deadline.

The Government has no plans to extend the deadline beyond 30 September 2020. HMRC will keep the situation under review and will take a proportionate and reasonable approach to anyone who is unable to file their tax return and pay the tax due or agree a time to pay arrangement by the 30 September 2020 deadline as a direct result of COVID-19.”


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