Disguised remuneration loan charge reporting deadline 1 October 2019
05 September 2019
The ‘2019 loan charge’ legislation in Finance (No 2) Act 2017 required affected taxpayers to settle tax and any NICs in relation to ‘disguised remuneration’ (DR) loan arrangements, or pay a 2019 loan charge, unless the outstanding DR loans had been repaid by 5 April 2019.
There is now an obligation to report to HMRC details of any DR loan outstanding as at 5 April 2019 and any DR loan which was repaid between 16 March 2016 and 5 April 2019, by 1 October 2019. This obligation affects the third party who made the loan, the employee and the employer. Penalties apply for non-compliance and inaccurate submissions.
The 2019 loan charge will be payable on 31 January 2020. However, we understand that HMRC may still be willing to enter into settlement discussions in respect of tax and NICs on DR loan arrangements before that date, to avoid paying the loan charge, although the 1 October 2019 reporting deadline would still apply.
Please contact Jon Claypole (tel.020 7486 5888) or Charlotte Thorpe (tel. 0203 219 4144) for more information or for assistance on the reporting obligation or the settlement of tax and NICs on DR loan arrangements.
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