Key points
- The loan charge can affect the self-employed as well as employees and directors.
- Have repayments been made that can reduce the chargeable amount?
- If the employer still exists the responsibility for collection of tax and National Insurance remains with them.
- Penalties will apply for failing to report the outstanding loan details before 1 October 2019.
- Employees must make good loan charge liabilities paid by employers.
- Those who wish to settle liabilities rather than pay the loan charge must contact HMRC by 5 April 2019.
Tax advisers helping clients with legacy disguised remuneration loan schemes (income provided through third parties) are likely to be busy settling cases before the 5 April deadline when the loan charge will apply to any other outstanding advances made since April 1999. These third-party arrangements were usually made through trusts such as employee benefit trusts (EBTs) which may have been onshore or offshore arrangements.
Advisers may also be aware of...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.