HMRC has confirmed that it will accept late elections to spread the charge over three years.
Taxpayers had to report their outstanding disguised remuneration loans that are subject to the loan charge using the loan charge reporting form by 30 September 2020. Taxpayers who wished to spread their disguised remuneration loan balances evenly across the 2018/19, 2019/20 and 2020/21 tax years could elect to do so using the same online form.
HMRC will automatically accept late elections made by an individual, or an agent on their behalf, on or before 31 December 2020. From 1 January 2021, HMRC will consider late elections on a case by case basis. Statement of Practice 1/2020 explains when HMRC will accept an election made after 31 December (broadly, when late elections which could not have been made within the statutory time limits for reasons beyond the individual's control).
HMRC has confirmed that it will accept late elections to spread the charge over three years.
Taxpayers had to report their outstanding disguised remuneration loans that are subject to the loan charge using the loan charge reporting form by 30 September 2020. Taxpayers who wished to spread their disguised remuneration loan balances evenly across the 2018/19, 2019/20 and 2020/21 tax years could elect to do so using the same online form.
HMRC will automatically accept late elections made by an individual, or an agent on their behalf, on or before 31 December 2020. From 1 January 2021, HMRC will consider late elections on a case by case basis. Statement of Practice 1/2020 explains when HMRC will accept an election made after 31 December (broadly, when late elections which could not have been made within the statutory time limits for reasons beyond the individual's control).
