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Reporting and paying the loan charge

18 March 2019 / Dave Jennings
Issue: 4688 / Categories: Comment & Analysis
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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...

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