Information about the loan charge on disguised remuneration schemes (Spotlight 44) that came into force on 5 April 2019 has been updated.
The guidance outlines HMRC’s view that disguised remuneration schemes that replace income with loans or other forms of credit do not work.
The loan charge on disguised remuneration schemes came into effect on 5 April 2019. It applies to disguised remuneration loans made since 6 April 1999 if they are still outstanding on 5 April 2019.
If you have an outstanding disguised remuneration loan you should report and account for your disguised remuneration loan charge.
If you used a disguised remuneration tax avoidance scheme and gave HMRC all the required information by 5 April 2019, you can still settle your tax affairs under the November 2017 settlement terms and not be subject to the disguised remuneration loan charge.
