HMRC has urged people to get in touch as soon as possible as help is available for those that used any ‘disguised remuneration avoidance scheme’, if they want to settle their tax affairs before the loan charge comes into effect.
HMRC is asking that people send all information to them by Friday 5 April 2019 at the latest.
What is the Disguised Remuneration Loan Charge?
Disguised remuneration loan schemes are used to avoid paying Income Tax and National Insurance contributions. You're classed as having a disguised remuneration loan, when you're paid for work or services by receiving a loan or other form of credit in a way that means it is unlikely to be repaid. With effect from 6 April 2019, HMRC will levy a loan charge for unpaid income tax and national insurance contributions.
HMRC has said: “people can still benefit from the published settlement terms but they must contact them with a genuine plan to settle before 5 April 2019, even if they can not pay it until after that date.
Anyone that uses the disguised remuneration loan scheme must contact HMRC to inform them they wish to settle their disguised remuneration tax affairs.
If you have not spoken to anyone at HMRC then you can also contact them by email.
HMRC contact details:
Full guidance can be found following the link below;
Still contact HMRC, people will not be forced to sell their main home and plans will be offered to people to spread payments across a number of years.
HMRC urge anyone affected by the loan charge to speak to them before Friday 5 April 2019.