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Payment time
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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