The Treasury committee has published a series of letters exchanged by committee chair Nicky Morgan, HMRC’s Jon Thompson and Jim Harra, and financial secretary Mel Stride, relating to the disguised remuneration loan charge.
The letters may be summarised as follows:
Nicky Morgan to HMRC chief executive, Jon Thompson, dated 18 December 2018 – Mrs Morgan asked about the terms of HMRC’s contractor loan settlement opportunity, which in certain circumstances requires contractors to agree to make a voluntary payment of tax for years that HMRC would otherwise be out of time to collect;
HMRC deputy chief executive, Jim Harra, to Nicky Morgan, dated 24 January 2019 – Mr Harra explained the terms of the contractor loan settlement opportunity, confirming that in some cases where voluntary payments would be required, HMRC may have missed opening tax enquiries even where full and complete information about the scheme was provided to HMRC at the time;
Nicky Morgan to Jim Harra, dated 20 February 2019 – Mrs Morgan asked a series of questions following HMRC’s evidence session with the committee on 30 January 2019; and
Nicky Morgan to financial secretary to the Treasury, Mel Stride, dated 20 February 2019 – Mrs Morgan acknowledged the government’s position on whether the loan charge is retrospective legislation, but said that there are related issues about the impact on taxpayer expectations of certainty that need to be addressed, since tax certainty helps individuals plan for major life events such as setting up home, starting a family or preparing for retirement, and that the way in which the loan charge interacts with statutory time limits for charging tax can undo such certainty.
The Treasury committee has published a series of letters exchanged by committee chair Nicky Morgan, HMRC’s Jon Thompson and Jim Harra, and financial secretary Mel Stride, relating to the disguised remuneration loan charge.
The letters may be summarised as follows:
Nicky Morgan to HMRC chief executive, Jon Thompson, dated 18 December 2018 – Mrs Morgan asked about the terms of HMRC’s contractor loan settlement opportunity, which in certain circumstances requires contractors to agree to make a voluntary payment of tax for years that HMRC would otherwise be out of time to collect;
HMRC deputy chief executive, Jim Harra, to Nicky Morgan, dated 24 January 2019 – Mr Harra explained the terms of the contractor loan settlement opportunity, confirming that in some cases where voluntary payments would be required, HMRC may have missed opening tax enquiries even where full and complete information about the scheme was provided to HMRC at the time;
Nicky Morgan to Jim Harra, dated 20 February 2019 – Mrs Morgan asked a series of questions following HMRC’s evidence session with the committee on 30 January 2019; and
Nicky Morgan to financial secretary to the Treasury, Mel Stride, dated 20 February 2019 – Mrs Morgan acknowledged the government’s position on whether the loan charge is retrospective legislation, but said that there are related issues about the impact on taxpayer expectations of certainty that need to be addressed, since tax certainty helps individuals plan for major life events such as setting up home, starting a family or preparing for retirement, and that the way in which the loan charge interacts with statutory time limits for charging tax can undo such certainty.
