Bespoke Tax Accountants

Specialist tax advice, accountancy and tax returns

01242 505970
info@bespoketax.com

  • Home
  • About Us
    • Meet The Team
    • Careers
    • Statutory Information
    • Privacy Policy
  • Who We Help
    • Personal and Family
    • Business
    • Our Clients
  • News
    • Making Tax Digital
  • Giving Back
  • Contact
  • Cloud Accounting
    • Xero

Disguised remuneration schemes

26th June 2019 By bespoketax

Disguised remuneration schemes

Loans schemes also known as disguised remuneration tax avoidance schemes have been used by some employers and individuals in order to try and avoid paying Income Tax and National Insurance Contributions (NICs). This is usually done by utilising a loan or other payment from a third-party which is unlikely to be repaid. HMRC has never approved these schemes and has always said they will not be effective for tax avoidance purposes.

A charge (known as the 2019 loan charge) applies to all loans made since 6 April 1999 if they remained outstanding on 5 April 2019. The loan charge policy package is expected to raise £3.2 billion and it has been estimated that 75% of this will come from employers, and 25% from individuals.

HMRC had strongly encouraged disguised remuneration scheme users to come forward and provide all the required information to enable them to settle their tax affairs by 5 April 2019. Anyone who provided all the information needed to HMRC by 5 April 2019, can still settle their tax affairs under the November 2017 terms. HMRC will work to agree settlement in these cases so these users will not have to report and pay the loan charge. However, the settlement must be agreed by the date set out in HMRC’s offer letter, if not the loan charge will be payable.

There are simplified payment arrangements in some cases. For example, HMRC will allow scheme users to spread their payments over 7 years if their current taxable income is less than £30,000 and over 5 years if their current taxable income is less than £50,000. This offer only applies if the taxpayer is no longer engaged in tax avoidance and took sufficient action before 5 April 2019.

Filed Under: Uncategorised

Recent News

  • CGT during divorce or separation
  • Taxpayers who return to the UK
  • Corporation Tax – marginal relief from 1 April 2023
  • Claiming Child Trust Fund cash

News Categories

  • Budget Summary
  • Business
  • Business Support
  • Capital allowances
  • Capital Gains Tax
  • Company Secretarial
  • Construction Industry Scheme
  • Corporate Governance & Regulation
  • Corporation Tax
  • Customs Duties
  • Duties
  • Employee Benefits
  • Employment & Payroll
  • Employment Law
  • European Union
  • Family Tax Credits
  • General
  • HMRC notices
  • Income Tax
  • Inheritance Tax
  • National Insurance
  • NIC & Pensions
  • Other duties
  • Overseas personal tax issues
  • Overseas tax issues
  • Payroll
  • Pension
  • Personal
  • Practice News
  • Stamp duty
  • Stamp Duty Land Tax
  • Tax credits
  • Tax Diary
  • Value Added Tax
  • VAT & Duties

About Us

Bespoke has a reputation for helping our clients make the most of their financial situations and in turn we have become a trusted extension of their business or family.

Bespoke assist with compliance requirements, providing specialist tax advice, and planning for now and the future.

Keep informed.
Sign up for our Topical Newsletter

Our FREE monthly newsletter will keep you up to date with the latest news related to the world of accountancy.

Register Here

Contact

Delta Place,
27 Bath Road, Cheltenham,
Gloucestershire, GL53 7TH
01242 505970
info@bespoketax.com

ICAEW Chartered AccountantsXERO Gold PartnerChartered Institute of TaxationMember of EISA

Copyright © 2022 · Bespoke Tax Accountants · Website by Culpepper & Co

.