HMRC responds to the government’s announcement of an independent review of the loan charge.
HMRC recently issued the following to agents:
‘The government has announced an independent review of the loan charge. HMRC has published guidance which sets out how the review of the loan charge impacts those affected. You can find more information on gov.uk. You may want to make your clients aware that those not settling their disguised remuneration scheme use will still need to complete an additional information return by 30 September 2019. The review will report to the government by mid-November 2019. HMRC will update the guidance once the government has responded to the review.’
The guidance on gov.uk states:
If you have already settled your disguised remuneration loan scheme use and paid the amount you owe in full
You are not directly affected by the announcement of the review and there is no change to your tax position at this time.
HMRC will update this guidance setting out details of what the next steps are for you if your potential liability to the loan charge changes as a result of the government response to the review.
If you have settled your disguised remuneration loan scheme use but are paying what you owe in instalments
There is no change to your tax position at this time. You should continue to pay the amounts you have agreed to pay while the review is ongoing.
HMRC will update this guidance setting out details of what the next steps are for you if your potential liability to the loan charge changes as a result of the government response to the review.
If you provided all the required information by 5 April 2019 and are waiting to finalise your settlement with HMRC
You can continue to finalise your settlement with HMRC if you wish to do so. Settling your open enquiries and appeals will allow you certainty in your tax affairs. We want to work with you to finalise your tax affairs and get out of avoidance for good. HMRC recognise that you may want to wait for the government’s response to the review before finalising your settlement.
You do not need to submit the additional information return by 30 September 2019 as HMRC already has the information it needs.
If you choose to settle, HMRC will continue its existing practice of not charging statutory late payment interest from 1 October 2018, or, if later, the month in which you provided the required information to HMRC.
HMRC will update this guidance setting out details of what the next steps are for you if your potential liability to the loan charge changes as a result of the government response to the review.
If you are not settling your disguised remuneration scheme use
You will still need to complete an additional information return by 30 September 2019. If you fail to do so HMRC reserves the right to charge penalties. You can find further information about the additional information.
Article from ACCA In Practice