HMRC has updated its ‘issue briefing’ on the disguised remuneration loan charge, first published in July 2018, to reflect the latest settlement terms and reassure taxpayers on the use of insolvency only ‘as a last resort’.
The briefing now emphasises that HMRC will not force anyone to sell their main home to pay their disguised remuneration debts, and also reflects HMRC’s recent announcement that it will allow individuals with 2018/19 taxable income below £30,000 to spread payment over seven years.
HMRC says that it will only consider insolvency where scheme users ‘are either at risk of accruing further debt or where they actively avoid paying what they owe’.
The briefing explains that those who registered to settle before 30 September and have sent the required information should receive a calculation by the end of February.
HMRC’s latest estimates indicate the loan charge will yield £3.2bn in tax, with 75% coming from employers and 25% from individuals. Around 50,000 individuals are thought to be affected.
HMRC has updated its ‘issue briefing’ on the disguised remuneration loan charge, first published in July 2018, to reflect the latest settlement terms and reassure taxpayers on the use of insolvency only ‘as a last resort’.
The briefing now emphasises that HMRC will not force anyone to sell their main home to pay their disguised remuneration debts, and also reflects HMRC’s recent announcement that it will allow individuals with 2018/19 taxable income below £30,000 to spread payment over seven years.
HMRC says that it will only consider insolvency where scheme users ‘are either at risk of accruing further debt or where they actively avoid paying what they owe’.
The briefing explains that those who registered to settle before 30 September and have sent the required information should receive a calculation by the end of February.
HMRC’s latest estimates indicate the loan charge will yield £3.2bn in tax, with 75% coming from employers and 25% from individuals. Around 50,000 individuals are thought to be affected.
