Loan charge 2019 – Are you prepared?
The Loan charge 2019 is a pain to many taxpayers who are affected by the Disguised Remuneration loan charge which takes effect on the 5th April 2019. The loan charge will apply to all disguised remuneration loans which are outstanding as at that date.
If you are affected by this charge and have not already settled with HMRC by reaching a settlement agreement, HMRC will be applying the loan charge on you.
HMRC has also flagged a few facts and figures about the taxpayers who will be impacted by this scheme, the facts are:
- Individuals who used loan schemes had double the income of an average taxpayer
- 70% of scheme users, used these for 2 years or more
- On average a scheme user avoided at least 20,000 pounds in tax and national insurance
If you have used a loan scheme at any point and have not settled with HMRC yet, there is still time to settle with HMRC, with added flexible payment options if you are unable to make the tax liability payments due to upfront.
Clear House are specialist London Accountants and Tax planners who can help you if the above applies. The loan charge scheme can be costly and time-intensive if not handled properly and can lead to many other issues and investigations from being initiated.