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Still time to settle loan schemes with HMRC, but be quick!

The deadline for submitting loan scheme particulars passed at the end of September 2018. However, HMRC has confirmed in their latest April 2019 Loan Charge guidance, there is still time to reach an agreed settlement and thereby avoid the 2019 charge – this is potentially relevant for ALL EBTs, EFRBS, Contractor Loans and all other employment-based Schemes)

 

The deadline for submitting information to be included in the current HMRC settlement opportunity, officially closed on 30 September 2018. However, as expected HMRC have left the door slightly ajar for those still wishing to go down the settlement route in their latest loan charge guidance published 23 October 2018.

This is important for employers, employees or contractors who entered into loan arrangements as the only way to avoid being hit with the 2019 Loan charge is to either repay the loans (in cash) or reach settlement with HMRC.

However, in order to ensure that the settlement can be concluded in time (and which might also necessitate arranging time to pay for the client) it is important to take steps as soon as possible.

Advisers are encouraged to speak to all clients as soon as possible to whom who this settlement opportunity may be relevant for (i.e. employer firms with EBTs, EFRBS and also Contractor Loan scheme users).

DTE’s tax team is experienced at helping clients reach settlement with HMRC and organising time to pay arrangements. If you require assistance please contact Alan Mccann amccann@dtegroup.com or call 0161 767 1291