Disguised Remuneration Loan Charge - 1st October 2019 Deadline Approaches
Individuals who haven’t yet settled or haven’t reached a settlement agreement with HMRC must report details of any loans that:
- Were outstanding on 5 April 2019 or;
- Were repaid/written off between 16 March 2019 and 5 April 2019 (the only allowable repayment is one made in cash).
The report to HMRC should provide details of the loan arrangements for each tax year, including:
- The scheme name;
- The start and end dates of the scheme used;
- Any HMRC case reference numbers known;
- Any DoTAS (Disclosure of Tax Avoidance) number, if known;
- The total amount loaned in each tax year, including any amounts repaid or written off;
- Any amounts of tax or NIC already settled.
Failure to report loans to HMRC before 1 October 2019 will leave the individual liable to penalties:
- An initial penalty of £300;
- Further daily penalties of up to £60 per day for as long as the information remains outstanding, up to a maximum of 90 days;
- Up to £3,000 for each inaccuracy deliberately or carelessly included within the information provided.
Jackson Stephen have considerable experience in dealing with EBT’s and EFRBS and can help you with the filing of your returns before the 1st October 2019 deadline.
Partner – Head of Tax
direct dial: 01942 292541
mobile: 07790 840394