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Report spares thousands from loan charge bills

23rd December 2019

An eagerly anticipated report into the controversial loan charge has given thousands of people an early Christmas present.

The Government has announced a string of concessions to lessen the severity of the policy, which had caused serious distress.

Up to 50,000 people were paid through so-called disguised remuneration schemes dating back to 1999.

Prior to the publication of the report, more than 8,000 of those had already paid backdated taxes to HMRC worth around £2 billion.

Those who had not declared any untaxed income or settled any liabilities had faced a midnight deadline on 31 January 2020.

But, the loan charge no longer applies to anyone who entered into disguised remuneration schemes before 9 December 2010.

The loan charge will also not affect those who declared they had made use of the schemes in a previous tax year before the policy took effect.

Those still facing the loan charge can repay their backdated taxes over the next three tax years, starting with 2018/19.

The review was announced by Chancellor Sajid Javid in September, but the findings were put on hold following the decision to call a general election.

Talk to us about declaring untaxed income.

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