Coronation Parade, 42 Cannon Lane, Pinner, Middlesex HA5 1HW

Call 020 8429 3636 - email excellence@dewanis.com

MPs call for review of HMRC loan charge

MPs are calling for an independent review of HMRC's controversial loan charge, which came into effect earlier this year.

14 Aug 2019

MPs are calling for an independent review of HMRC's controversial loan charge, which came into effect earlier this year.

In a letter to Chancellor Sajid Javid, MPs have called for a thorough review of the loan charge and a delay to the 31 October loan charge payment deadline.

The loan charge, which came into effect on 6 April this year, applies to anyone who used 'disguised remuneration' schemes. The legislation added a 45% non-refundable charge on all loans advanced through the schemes, unless the individual had agreed with HMRC to settle their tax affairs by 5 April.

The charge mainly affects freelancers and agency workers: however, many of the 50,000 people caught up in the issue are low paid and were persuaded by their employers to join the schemes. The typical sum owing, according to the Loan Charge Action Group, is almost £120,000.

Commenting on the loan charge, a Treasury spokesperson said: 'The loan charge is designed to tackle tax avoidance and ensure everyone pays their fair share. It builds on more than two decades of HMRC action to challenge these schemes.'

During the recent Conservative Party leadership election, Prime Minister Boris Johnson promised a review of the charge, but has not acted so far.

Try a site search Tax return, dividends, pension, spring statement...

Home | Attribution | Contact us | Site map | Accessibility | Disclaimer | Privacy Notice | Help | Search |

Dewanis is a trading name of Dewanis Limited, a company registered in England company No: 06324851. VAT Registration No: 997 6860 34. Director: Ragesh K Dewani ACIB FCA, Registered office address: Coronation Parade, 42 Cannon Lane, Pinner, Middlesex HA5 1HW.

Registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales
A member of the ICAEW Practice Assurance Scheme.

© 2019 Dewanis Chartered Accountants. All rights reserved. We use cookies on this website, you can find more information about cookies here.