Contractor loan scheme settlement payment terms amended

HMRC has amended the terms of the settlement agreement for taxpayers who want to pay the tax due before the contractors’ loan charge comes into effect in April 2019.

In an issue briefing HMRC says it appreciates the loan charge will have a significant impact and it wants to make it as easy as possible for people to settle their tax affairs.

The guidance states: ‘If the new loan charge will apply and you want to settle your use of these schemes before it takes effect you can now pay the amount due over a period of up to five years as long as your expected current year taxable income is less than £50 000 and you are no longer engaged in tax avoidance.’

Those with higher incomes can also request for extended payment periods which will be considered case by case.

Since the loan charge...