The HMRC’s briefing: ’Settling disguised remuneration scheme use and/or paying the loan charge’ has now been updated to reflect the fact that the deadline of the 30‌‌ September 2020 has passed and to set out next steps. HMRC have asked us to share the below message.

“By 30‌‌ September 2020, people with loans subject to the loan charge should have filed a complete and accurate 2018–2019 tax return. The return should have included full details of loans subject to the loan charge and any other income taxable in the 2018–2019 tax year. By the 30‌‌ September 2020 customers should have paid in full or agreed a Time To Pay arrangement.

If any of your clients did not complete these actions by the deadline then we recommend that you review the updated issue brief and guidance and discuss with them the next steps that they have to take. You may wish to review with them their options in relation to Time To Pay arrangements.

Anyone subject to the loan charge who is concerned about their ability to pay, should contact us on 03000 599110.

HMRC will continue working with any individuals who engage with us to agree affordable payment solutions that settle a person’s outstanding tax liabilities.

Support for customers

We know that some customers need extra support at what can be a difficult time for them. All our disguised remuneration and debt management teams are trained to identify customers who might need extra help managing their affairs. We have enhanced this service over the last year:

• we provide support from trained caseworkers or support specialists for customers who require support; for example, as a result of short-term illness or language difficulties
• where a customer faces more serious and pressing issues, we will provide a named contact; for example, where someone is very distressed as a result of a recent bereavement.

A customer can nominate a professional tax agent, a friend or a family member to deal with their tax affairs on their behalf.

We will work with people who are supporting or acting on a customer’s behalf, including a financial adviser, or organisations such as Citizen’s Advice or TaxAid.

Independent Debt Advice

If your clients need debt advice, please encourage them to contact the loan charge helpline on 03000 599110. We will be able to refer them to a debt advice organisation that understands how the loan charge affects individuals and the options available to them.

The advice provided is independent and free, they will not be charged for contacting the service.

The discussions are private. HMRC is not sighted on discussions with the debt advice provider and has no influence over them. The service can give people information about options to pay and provide the information needed to help them decide on how to pay any outstanding debts.”