Subscribe to our newsletter

2019 loan charge starts on Friday

The 2019 loan charge comes into effect on Friday, 5 April.

2019 loan charge starts on Friday
smsfadviser logo
  • Staff Reporter
  • April 04, 2019
share this article

Help is available to people who used disguised remuneration avoidance schemes if they want to settle their tax affairs before the loan charge comes into effect.

HMRC’s message to anyone affected by the loan charge is to talk to them before 5 April.

"People can still benefit from the published settlement terms if they contact HMRC with a genuine intent to settle before 5 April 2019 and provide the relevant information, even if settlement cannot be reached until after that date," HMRC said. 

How scheme users can settle

If a scheme user is already speaking to someone in HMRC about their use of a disguised remuneration scheme, they should inform them they want to settle their disguised remuneration tax affairs.

If they’re not already speaking to someone at HMRC, they can do so by emailing:

·       [email protected] for contractor loan schemes; or

·       [email protected] for all other disguised remuneration schemes.

There is full guidance for people who want to settle their tax affairs on GOV.UK, including information about what information they need to send by 5 April 2019, and how they can pay what they owe.

Difficulty paying what they owe

People don’t need to pay the full settlement amount in one go or on 5 April, HMRC advised.

"If anyone has difficulty paying what they owe, we can help by spreading payments across a number of years," the office said. 

"There is no maximum time period for payment arrangements. HMRC will not force anyone to sell their main home to pay their disguised remuneration debts."

Even if scheme users feel they cannot pay what they owe, they should still call HMRC as soon as possible.

Receive the latest Financial Accountant news,
opinion and features direct to your inbox.

related articles