Loan Charge

Thank you for contacting me about the Loan Charge. 
 
Disguised remuneration schemes are an aggressive and contrived form of tax avoidance which cost the taxpayer hundreds of millions of pounds each year, depriving our vital public services of funding. That is why the Government is taking action to ensure that everybody pays the taxes they owe and contributes to the services they use with measures such as the 2019 Loan Charge.
 
A recent impact report found that three-quarters of those affected are employers rather than individuals. That said, I recognise that those individuals who face large tax bills resulting from the Loan Charge may find this stressful to deal with and will require extra support. 
 
HMRC will treat individual cases sympathetically and appropriately, agreeing payment terms which take full account of individuals' ability to pay. For example, those on an income of less than £30,000, provided they came forward before the charge came into effect, can have a minimum of seven years to pay, while those under £50,000 can have at least five years to pay.
 
I am glad that the decision in 2016 to grant three years amnesty afforded those affected with the opportunity to agree a settlement with HMRC and avoid being subject to the charge before it came into force. During this three-year period, HMRC have settled over 6,000 cases, raising around £1 billion for public finances.
 
The Loan Charge is expected to bring in more than £3 billion for public finances over the next five years. I welcome that this will build upon the more than £200 million of additional revenue secured and protected from tax avoidance, evasion, and non-compliance since 2010.
 
Thank you again for taking the time to contact me