The Low
Incomes Tax Reform Group (LITRG) has welcomed HMRC’s decision to allow late
loan charge spreading elections up to 31 December 2020 (as published in Statement
of Practice 1/2020) but has also warned of other barriers stopping
people from making an election.
LITRG notes that the 30 September deadline was missed for
different and sometimes complex reasons and that, on its own, the easement
around spreading elections will not ‘be enough to get people moving towards
complying with the loan charge’.
HMRC is urged to write to those who missed the 30 September
deadline, setting out the specific information that it holds about them where
loan arrangements are suspected. This could help act as a trigger or prompt for
taxpayers to investigate and take the first step towards bringing their tax
affairs up to date. The letters should also highlight the available help via
TaxAid or HMRC’s extra support team for unrepresented taxpayers, says LITRG.
The Low
Incomes Tax Reform Group (LITRG) has welcomed HMRC’s decision to allow late
loan charge spreading elections up to 31 December 2020 (as published in Statement
of Practice 1/2020) but has also warned of other barriers stopping
people from making an election.
LITRG notes that the 30 September deadline was missed for
different and sometimes complex reasons and that, on its own, the easement
around spreading elections will not ‘be enough to get people moving towards
complying with the loan charge’.
HMRC is urged to write to those who missed the 30 September
deadline, setting out the specific information that it holds about them where
loan arrangements are suspected. This could help act as a trigger or prompt for
taxpayers to investigate and take the first step towards bringing their tax
affairs up to date. The letters should also highlight the available help via
TaxAid or HMRC’s extra support team for unrepresented taxpayers, says LITRG.
