Government details scale of loan scheme tax avoidance

The Treasury has published its report on the scale and nature of tax avoidance through disguised remuneration schemes as required by FA 2019.

The report explains the loan charge saying the rationale for it is ‘clear and robust’ and asserts that it is ‘not retrospective’. However it recognises the need to support individuals affected by the loan charge saying it takes the ‘wellbeing of customers extremely seriously’. The report explains how HMRC is working to expand its needs enhanced support service to vulnerable customers undergoing compliance checks.

It concludes: ‘Overall the government’s view is that the charge on disguised remuneration loans is the right approach to ensure fairness for the vast majority of UK taxpayers who pay the right amount of tax at the right time and draw a line under this form of tax avoidance. However the government recognises the difficulties that some people are facing...