Loan charges – updated HMRC publication with warnings
17 March 2017: Disguised remunerations and tax avoidance schemes are again in the spotlight. HMRC has published a warning against schemes which claim to avoid loan charges.
In the Budget of 2016, the government announced a number of changes to tackle existing avoidance schemes and to prevent their future use. Changes included loan charges on disguised remuneration loans which are outstanding on 5 April 2019. HMRC found promoters of the schemes claiming they have come up with arrangements that avoid the loan charges.
HMRC are warning promoters and the users of these schemes that they avoidance arrangements do not work and the only way to avoid the loan charge is by repaying the loan balance and settling the tax liability with HMRC. HMRC have warned that they will investigate any attempts to avoid the loan charge.
If you wish to discuss the matter further with one of our team of professional Insolvency Practitioners, initial consultations at BRI Business Recovery & Insolvency are always free, confidential and with no obligation.