Disguised remuneration

Source:  HMRC


Employers who have not reported and paid the loan charge.

We are aware of a number of employers who have not reported and paid the loan charge on relevant disguised remuneration loans. We are writing to these employers to remind them of their responsibilities, and let them know what will happen next if they do not report and pay the loan charge.

If any of your clients receive this letter, they should read it carefully and take action by the date we give. If you or your clients have any questions about the letter or the loan charge, we can be contacted using the details on the letter.

Spotlight 57 – tax avoidance by selling future business revenues to a revenue service trust

We are aware of an arrangement where a business may enter into an agreement with a trust and claim to have sold the rights to its future revenue to the trust. HMRC views this as tax avoidance.

Spotlight 57 explains why this type of arrangement should not be used, and why we strongly advise everyone to steer clear of it. If you know anyone who is thinking of using this type of arrangement, please guide them towards the Spotlight.

If you know anyone who is already using this type of scheme, we want to help them get out of it as soon as possible.

Find out more about tax avoidance so you can spot the warning signs. HMRC want to help everyone get their tax affairs right the first time.

Further help and support

If your clients have outstanding disguised remuneration scheme use that they want to settle, but are concerned about paying, please contact us. We want to help everyone to pay what they owe and recognise that some people may have difficulty doing this.

Anyone who wants to discuss settlement with us should speak to their usual HMRC contact or email ca.loancharge@hmrc.gov.uk. If you email, please use ‘ST20’ in the subject line.

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