Report spares thousands from loan charge bills

An eagerly anticipated report into the controversial loan charge has given thousands of people an early Christmas present.

The Government has announced a string of concessions to lessen the severity of the policy, which had caused serious distress.

Up to 50,000 people were paid through so-called disguised remuneration schemes dating back to 1999.

Prior to the publication of the report, more than 8,000 of those had already paid backdated taxes to HMRC worth around £2 billion.

Those who had not declared any untaxed income or settled any liabilities had faced a midnight deadline on 31 January 2020.

But, the loan charge no longer applies to anyone who entered into disguised remuneration schemes before 9 December 2010.

The loan charge will also not affect those who declared they had made use of the schemes in a previous tax year before the policy took effect.

Those still facing the loan charge can repay their backdated taxes over the next three tax years, starting with 2018/19.

The review was announced by Chancellor Sajid Javid in September, but the findings were put on hold following the decision to call a general election.

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