Disguised remuneration loans: HMRC latest update

Disguised remuneration loans: HMRC latest update

Caroline Harwood, Partner, Head of Employment Tax and Share Plans
21/05/2020
Disguised remuneration loans: HMRC latest update

On 20 May 2020, HMRC have confirmed that if you have outstanding disguised remuneration loans that are subject to the Loan Charge, you must report the details by 30 September 2020. This can be done using this online form.

It is important to note that the online form has now been updated so that an election can be made to spread an outstanding loan balance evenly across three years: 2018/19, 2019/20 and 2020/21. The election to spread loan balances is 30 September 2020. Please be aware that once an election is made, it cannot be withdrawn.

The form should be complete and accurate to the best of your knowledge and can be used to:

  • report an outstanding loan balance for the first time
  • resubmit information to correct inaccuracies in a previous form
  • make an election to spread the Loan Charge balance.

If you have already submitted a form and the information provided at the time was complete and accurate to the best of your knowledge then you don’t need to take any further action, even if the outstanding balance has changed following the Loan Charge review. However if you want to make an election to spread a loan balance you will need to use the form to make the election, but there is no need to resubmit information previously provided.

If the balance subject to the Loan Charge has now changed following the review, the new form can be used to provide the updated loan balance.

If you need a paper copy of the form, you can call 03000 599110 to ask for one. You can call the same number to speak to HMRC about this issue or email ca.loancharge@hmrc.gov.uk.

For more information, please speak to your usual Crowe contact.

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Caroline Harwood
Caroline Harwood
Partner, Head of Share Plans and Employment Tax
London