[UK] Disguised remuneration: Independent loan charge review

Last week we reported that on the 11^th of September 2019 Chancellor Sajid Javid announced an independent review saying that the focus will be on the impact of the Loan Charge on individuals who have directly entered into disguised remuneration schemes.  This is the 45% charge that HMRC can apply to disguised remuneration schemes that the government and HMRC have previously said are schemes that are “avoidance arrangements that seek to avoid Income Tax and National Insurance contributions (NICs) by paying scheme users their income in the form of loans”.  

Sir Amyas Morse, former Chief Executive and Comptroller and Auditor General of the National Audit Office will lead the review.  On the 17^th of September 2019, the gov.uk announcement was updated with contact details for the review and how people can provide supporting evidence.  The full update reads as follows:

Contacting the review and providing supporting evidence

Over the coming weeks, the review intends to consider the great deal of information publicly available on the Loan Charge ahead of writing its report.

The review is interested in hearing from a wide range of people and understanding their different perspectives to inform the review. If you would like to provide supporting documentary evidence then please email it to: secretariat@loanchargereview.org.uk

The terms of reference require the review to complete the report by mid-November, so any further material needs to be provided by September 30th.

Any evidence you send may be published or referred to as a part of the report, so do please identify any information that is confidential and explain the reasons why it cannot be published.

Global Payroll Association Comment

The initial legislation and HMRC’s actions regarding the Loan Charge have come under a lot of scrutiny, with claims of people being forced into hardship, bankruptcy and enduring mental stress.  So we encourage anyone with evidence to provide this to the independent review.

Note that the deadline is tight and is only a few weeks away to allow the review to meet its target of making independent recommendations to the Chancellor of the Exchequer and the Financial Secretary to the Treasury by mid-November 2019.

Last week we reported that on the 11^th of September 2019 Chancellor Sajid Javid announced an independent review saying that the focus will be on the impact of the Loan Charge on individuals who have directly entered into disguised remuneration schemes.  This is the 45% charge that HMRC can apply to disguised remuneration schemes that the government and HMRC have previously said are schemes that are “avoidance arrangements that seek to avoid Income Tax and National Insurance contributions (NICs) by paying scheme users their income in the form of loans”.  

Sir Amyas Morse, former Chief Executive and Comptroller and Auditor General of the National Audit Office will lead the review.  On the 17^th of September 2019, the gov.uk announcement was updated with contact details for the review and how people can provide supporting evidence.  The full update reads as follows:

Contacting the review and providing supporting evidence

Over the coming weeks, the review intends to consider the great deal of information publicly available on the Loan Charge ahead of writing its report.

The review is interested in hearing from a wide range of people and understanding their different perspectives to inform the review. If you would like to provide supporting documentary evidence then please email it to: secretariat@loanchargereview.org.uk

The terms of reference require the review to complete the report by mid-November, so any further material needs to be provided by September 30th.

Any evidence you send may be published or referred to as a part of the report, so do please identify any information that is confidential and explain the reasons why it cannot be published.

Global Payroll Association Comment

The initial legislation and HMRC’s actions regarding the Loan Charge have come under a lot of scrutiny, with claims of people being forced into hardship, bankruptcy and enduring mental stress.  So we encourage anyone with evidence to provide this to the independent review.

Note that the deadline is tight and is only a few weeks away to allow the review to meet its target of making independent recommendations to the Chancellor of the Exchequer and the Financial Secretary to the Treasury by mid-November 2019.