Scheme users urged to settle ahead of the loan charge

Practitioners are being reassured that clients’ use of disguised remuneration schemes can still be settled even though the 30 September deadline for sending information has passed.

In Agent Update 68 HMRC says: ‘To give your clients the best chance of settling before the loan charge comes into effect [on 6 April 2019] you should provide all the required information with a tax calculation as soon as possible. The later you leave it the less chance your clients will have of reaching a settlement ahead of the loan charge.’

A five-year instalment plan is available for individuals with income of less than £50 000 and who are no longer engaging in avoidance. These terms are available only for clients who settle ahead of the loan charge. Clients with higher incomes or who need a longer period to pay can still agree instalment plans but they will need to provide...