Report spares taxpayers from loan charge deadline
31st January 2020
Up to 50,000 people were paid through so-called disguised remuneration schemes dating back to 1999 and pior to the publication of the report back in December, more than 8,000 people had already paid backdated taxes to HMRC reported to be worth around £2 billion.
Those who had not declared any untaxed income or settled any liabilities had faced a midnight deadline on 31 January 2020. But the loan charge no longer applies to anyone who entered into disguised remuneration schemes before 9 December 2010.
The loan charge will also not affect those who declared they had made use of a scheme in a previous tax year before the policy took effect.
Prior to the self-assessment deadline, those affected by the loan charge could elect to evenly spread backdated taxes across three tax years.
The first instalment was due before the 2018/19 deadline for tax returns, while the second and third instalments are due ahead of the self-assessment deadlines for 2019/20 and 2020/21.
The review into the loan charge was announced by Chancellor Sajid Javid in September 2019, but the findings were put on hold following the decision to call a general election.
If you require help with your personal tax affairs you can contact our team on 020 7330 0000.