Where employers have employees who have outstanding ‘disguised remuneration loans’ on 5 April 2019, a charge arises on that date and the employer must calculate and pay the PAYE and NIC arising to HMRC by 22 April 2019 (paying electronically) or 19 April 2019 if paying by post.
On 1 April 2019, HMRC issued guidance on how to calculate and report the PAYE and NIC due on these payments. Manually calculate deductions due on the loan charge covers both existing and former employees and considers the wider impact on the apprenticeship levy.
The 5 April 2019 charge arises where, broadly, an individual has received a loan or credit since 6 April 1999 from a third party in connection with their employment. Read more on guidance from HMRC on reporting disguised remuneration loans but if you are in any doubt please contact Caroline Harwood or your usual Crowe tax advisor.
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