t: 01633 240080,  f: 01633 240081

24 Bridge Street, Newport NP20 4SF

Have you received income in the form of loans?

Source: HM Revenue & Customs | | 05/03/2019

HMRC has issued a new briefing paper on disguised remuneration charge on loans. Disguised remuneration schemes are tax avoidance arrangements that seek to avoid Income Tax and National Insurance contributions by paying scheme users their income in the form of loans.

HMRC is clear that these loans were never intended to be repaid and are no different to normal income and are therefore taxable. HMRC is encouraging tax-payers affected to come forward and settle their tax affairs before a charge on these outstanding loans comes into effect.

The charge will not arise on outstanding loans if the individual has agreed a qualifying settlement with HMRC before 5 April 2019. HRMC is offering flexible payment arrangements to those having genuine difficulty paying what they owe. For example, HMRC will allow scheme users to spread their payments over 7 years if their current taxable income is less than £30,000, and 5 years if their current taxable income is less than £50,000. This offer only applies if the taxpayer is no longer engaged in tax avoidance and takes sufficient action before 5 April 2019. HMRC will look at other taxpayers on a case-by-case basis.

Although the deadline is fast approaching, HMRC has been clear that you will not be disadvantaged if you provided the relevant information by 5 April but have not been able to settle due to a delay at HMRC.



 

Latest News

  • Keep abreast of Brexit news

    19/03/2019 - More...

    As the Brexit date fast approaches, it seems the only thing we can say with any certainty is that uncertainty continues to plague the issue of our leaving the EU. The negotiations

  • Present tax-free company benefits

    19/03/2019 - More...

    The list of company benefits that can be provided tax-free to employees is quite short. However, some of the benefits that can be provided include the following: Meals: Free or

  • Changes to VAT IT systems if no-deal Brexit

    19/03/2019 - More...

    In a letter being sent to businesses across the country, HMRC has published the following information on the effect a no-deal Brexit would have on changes to VAT IT systems. We

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

 

Copyright © 2019 Haasco Limited (Company registration 7030921). Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales (Firm C003118150). Indemnity insurer - Axis Speciality Europe SE (Policy 374997016)

Cookie Policy | Privacy Policy