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Loan charge repayments deferred

Newsletter issue - February 2020.

In September 2019, the government commissioned Sir Amyas Morse to conduct an independent review of the loan charge (the review). The review was published on 20 December 2019 along with the government's response, which confirmed that it would accept all but one of the review's recommendations.

The main change is that the government has agreed to defer the loan charge repayment date to September 2020.

Background

Broadly, the 'loan charge' is a charge to tax on employees and traders who were paid via disguised remuneration loan arrangements in order to minimise liability to tax and NICs. In general terms, any individual who received a disguised remuneration loan or credit on or after a specified date, which was still outstanding on 5 April 2019, will be liable to the charge, unless they or their employer have previously accounted for any tax due on the loan.

When the provisions were first announced the professional bodies generally supported the underlying policy of countering tax avoidance, but also expressed concern about the potential hardship this measure would cause in certain cases, particularly at the lower end, including some people who were misled into using these schemes. This prompted the government to request an independent review, led by Sir Amyas Morse, who subsequently recommended certain changes to the provisions. The government accepted all but one of the recommendations in the review.

In December 2019, the Treasury agreed to limit the loan charge cut-off date to 9 December 2010 instead of 1999, and waive charges for those who disclosed loan scheme issues to HMRC, in instances where the tax authority failed to take action, for loan charges raised between 9 December 2010 and 5 April 2016. To qualify, taxpayers would have had to fully disclose their schemes on their tax return over this period. If HMRC took no action, then their cases will be deemed to have been resolved.

In addition, the Treasury said it would bring forward alternative action to tackle use of the tax avoidance schemes before 2010, along with new action against promoters of disguised remuneration schemes. Details of the crackdown are expected to be announced at the time of the Budget on 11 March 2020.

Scheme users will be able to defer filing their returns and paying their loan charge liability until September 2020. Taxpayers will be allowed to split the loan balance over three tax years (between 2018/19 and 2020/21) to make bills more affordable.

However, the government rejected a recommendation to introduce a write-off of tax due on the loan charge after 10 years for individuals whose time to pay arrangement is longer than 10 years. That would allow those who have avoided tax through use of disguised remuneration tax avoidance schemes more favourable terms than taxpayers with other debts, including tax credit claimants.

The changes are set to reduce bills for more than 30,000 people subject to the loan charge, which means that some 60% of the total number of people affected by the loan charge will obtain some respite from the retrospective legislation. Moreover, it is estimated that some 11,000 taxpayers will be taken out of the charge altogether as a result of the Amyas review recommendations.

Once legislation has been passed HMRC will repay parts of some settlements reached with taxpayers where they had voluntarily paid amounts due for earlier years.

HMRC have published revised guidance (https://www.gov.uk/government/publications/disguised-remuneration-independent-loan-charge-review/guidance) to help users of the schemes understand what they have to do and extra time will be provided so that users of schemes can defer sending their return, and paying the tax for 2018-19, until the end of September 2020.

Addlestone Office

Loan charge repayments deferred

Andrew has been working in accountancy practices since leaving school at 16 and has over 30 years of experience dealing with all aspects of small and medium size businesses, personal and corporate tax issues.

He has been a partner since 1995 and has a wide and varied general practice background.

Andrew has extensive knowledge of many areas of business, accountancy and tax and is able to draw on his experience and knowledge to give clients comprehensive advice on a wide range of matters.


Loan charge repayments deferred

Keith joined Turner Hampton in May 2001, as tax partner. He qualified with a medium sized provincial firm in 1994 before moving to the City to join a top six firm where he specialised in multi-national partnership tax.

He has a wealth of experience in dealing with small owner managed businesses through to larger national organisations and those with interests abroad.

Keith, currently oversees the personal tax and corporation tax compliance and planning strategies of taxation for our clients.


Loan charge repayments deferred

Marc joined the accountancy profession in 2006 and trained with a top 50 firm before qualifying in 2010. Marc joined Turner Hampton in the same year because he was excited about the challenge of taking on a more hands-on role with clients.

Marc’s focus is on helping individuals with their businesses – from sole trades to large corporates – and guiding them through the red tape that often comes with accounting. Marc enjoys helping clients spot opportunities that can contribute to their businesses being successful, and assisting them with the real nitty-gritty, without losing the overview. Marc gets the biggest pleasure from his work when he is able to help clients save money or achieve something they may be striving towards.

Outside of work, Marc enjoys watching and playing all sports, listening to music, going to concerts and eating out.


Loan charge repayments deferred

Vaughn is an ACCA & AAT qualified accountant, Vaughn joined CSL in 2016 and believes his 17 years of experience has allowed him to gain a vast knowledge in dealing with all aspects of small businesses, personal tax and corporate tax issues.

Vaughn is a strong believer in building good client relationships. He feels that by understanding the specific needs of each client, he is able to offer more sound and efficient tax advice.

Outside of work Vaughn is a keen sportsman. If he isn’t enjoying time with his family, he can often be found walking many of Surrey’s local golf course fairways or attending sporting events.


Loan charge repayments deferred

Melanie joined CSL Partnership in April 2017 as a senior accountant. She is ACCA qualified with over 10 years experience working within practice. Melanie works with a wide range of clients and provides advice to owner-managed businesses and personal tax clients on accountancy and taxation matters.


Loan charge repayments deferred

Cindy joined CSL Partnership in 2007. She is an ACA qualified accountant with over 20 years of accountancy experience working within both practice and business.


Loan charge repayments deferred

Colin has worked in the accountancy profession for over 35 years during which he has gained a great deal of experience working on a diverse range of small and medium sized businesses along with sole trades and partnerships.

His areas of expertise lay within accounting, auditing, personal and business tax matters.

He is passionate about the role which small and medium sized businesses play in today’s market and how the accountancy profession can best serve their needs.


Loan charge repayments deferred

Carole has been a bookkeeper and payroll clerk for over 25 years and is qualified by experience. She has recently become involved in the process of auto enrolment for pensions. Over the years she has been self-employed but more recently employed in accountancy practices around the area.


Loan charge repayments deferred

Karen joined the practice in early 2019 as our Administrator/Receptionist and brings 15 years previous experience to the role. She ensures the office runs smoothly and efficiently providing back up and resources to the professional staff allowing them to focus on client matters. Karen is a very cheerful individual and always happy to help. In her spare time Karen enjoys spending time with her family.


Loan charge repayments deferred

Martin joined CSL Partnership in November 2019 returning to practice after spending the previous 8 years working in Industry. He is an AAT qualified accountant and has spent over 20 years working in the profession.

Martin works on all manner of clients from sole traders to large limited companies. He is an avid user of new software and technology to improve how he and clients work together and will always look to find a way to make life simpler for the client so they can focus on running the business rather than stressing over the accounts.


Loan charge repayments deferred

Ian joined Turner Hampton in 2016 and has worked in the accountancy profession for over 30 years.


Woking Office

Loan charge repayments deferred

Emma has worked in accountancy practices for over 20 years and qualified as a Chartered Certified Accountant in 2000. She has gained experience in all aspects of the accounting and auditing functions, developing exposure to a broad range of clients.

Emma advises owner-managed businesses and personal tax clients on accountancy and taxation matters. She has a particular expertise on systems review and implementation.

She has worked for CSL Partnership since it formed in 2001, becoming a director in 2005 and now manages the Woking office.


Loan charge repayments deferred

Philip has worked in various accountancy practices since the age of 19 and joined CSL Partnership in 1998 where he qualified in 2008.

He works with individuals, sole traders and limited company businesses to assist them with all their accounting and taxation requirements.


Loan charge repayments deferred

Andy has worked in accountancy since 2010 and joined CSL Partnership in April 2018. He has experience in a wide range of sectors, and has enjoyed working with individuals, sole traders and limited companies of varying sizes and needs. Outside of the office, you’ll find Andy on a hockey pitch or listening to music.


Loan charge repayments deferred

Lesley joined Turner Hampton in 2003, having previously worked both in accounts departments and in practice. She has been running client payrolls since joining the company and has gained many years of experience in payroll. Lesley now processes all aspects of payroll for both Turner Hampton and CSL Partnership clients.


Loan charge repayments deferred

Gail joined the firm in May 2018 and has worked in accountancy practices as a bookkeeper and payroll clerk since 2013. Historically, Gail has been self-employed and worked for companies in the financial and customer service sectors.

She is a full member of AAT. When not working, she enjoys hiking, mountain biking and yoga.


Loan charge repayments deferred

Marrieclaire is a bookkeeper, she processes payroll and maintains the accounting records to prepare VAT Returns and CIS Returns. Marrieclaire is a qualified Chartered Management Accountant with varied industry experience.


Loan charge repayments deferred

Elaine joined in June 2017. Prior to this she worked in a number of different industries including fast moving consumer goods and mechanical & electrical consultants.

She is a fellow member of AAT having completed the qualification in 1997.


Loan charge repayments deferred

Natasha joined CSL Partnership in October 2019, having worked in accountancy since 2017. Natasha has experience completing payrolls, bookkeeping, VAT returns & CIS returns. She is currently a trainee accountant, looking to become qualified in the coming years.


Loan charge repayments deferred

Wendy joined CSL in April 2019 as a Part-Time receptionist and administrator after 25 years working as an office manager in the design world. She is more than happy meeting and greeting clients and working with such a great team of people in the Woking Office. In her spare time Wendy enjoys tennis, yoga and pilates.


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