Loan Charge

 

The loan charge for disguised remuneration loans arises on 5 April 2019. You’ll have to pay the loan charge for any loan from 6 April 1999 that:

• you received through a disguised remuneration tax avoidance scheme
• is still outstanding on 5 April 2019

If you’re affected by the loan charge, you may be able to postpone the date on which it needs to be paid to HM Revenue and Customs.  So don’t forget to apply for postponement by 31 December 2018.

Who can apply for postponement

You can only apply to postpone the loan charge payment date if either you:

• get approval from HMRC that the loan in question is classed as a qualifying fixed term loan
• paid an accelerated payment in respect of the income on which the loan charge is based that is equal to or more than the outstanding loan balance

Only the person liable for the loan charge can apply for postponement. If your employer will be liable for the loan charge, you must give them the relevant documents and ask them to make an application to postpone.