Magee Gammon News Report spares taxpayers from last month’s loan charge deadline

Report spares taxpayers from last month’s loan charge deadline

An eagerly anticipated report into the controversial loan charge has provided respite for thousands of people.

The Government revealed a string of concessions to lessen the severity of the policy, which seriously distressed those affected.

Up to 50,000 people were paid through so-called disguised remuneration schemes dating back to 1999.

Prior to the publication of the report before Christmas, more than 8,000 of those had already paid backdated taxes to HMRC worth around £2 billion.

Those who had not declared any untaxed income or settled any liabilities had faced a midnight deadline on 31 January 2020.

But the loan charge no longer applies to anyone who entered into disguised remuneration schemes before 9 December 2010.

The loan charge will also not affect those who declared they had made use of a scheme in a previous tax year before the policy took effect.

Prior to last month’s self-assessment deadline, those affected by the loan charge could elect to evenly spread backdated taxes across three tax years.

The first instalment was due before the 2018/19 deadline for tax returns, while the second and third instalments are due ahead of the self-assessment deadlines for 2019/20 and 2020/21.

The review into the loan charge was announced by Chancellor Sajid Javid in September 2019, but the findings were put on hold following the decision to call a general election.

Get in touch to discuss the loan charge.

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