The government announced at Autumn Budget 2024 that there will be a further independent review of the loan charge, to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. HMRC will consider what updates need to be made to relevant guidance once the government announces further details about the review and once the review has concluded.
The loan charge legislation remains in force. If you have agreed a payment plan with HMRC you should continue to pay the amounts you have agreed to pay while the review is ongoing.
Disguised remuneration schemes are arrangements that pay loans instead of ordinary income to avoid Income Tax and National Insurance contributions.
The loan charge has been introduced to tackle the use of disguised remuneration schemes.
People who anticipate having difficulty paying what they owe under the loan charge will be able to agree a manageable payment plan with HMRC depending on individual circumstances. There is no limit, and people will be given as long as they need to pay what they owe.
This issue briefing sets out information about the loan charge and explains how HMRC will help customers settle their disguised remuneration and/or loan charge liabilities.