• Tax Avoidance Reviews & Disguised Remuneration Loan Charge

Tax Avoidance Reviews & Disguised Remuneration Loan Charge

28 April 2020

It is generally stressful to have a long running tax enquiry and the uncertainty of how HMRC will conclude the matter. For many people, the review service is about finding a mutually agreeable solution with HMRC. Plus, peace of mind, and one less problem to deal with. Financial considerations are of course an issue and we explore this issue here.

The current COVID-19 pandemic is causing further uncertainty, and often distress, for taxpayers. In response to COVID-19, many Tribunal cases are currently stayed (on hold) or postponed to 2021. So, for avoidance arrangements being litigated, the quest for a conclusion is likely to take even longer than first anticipated.

HMRC are diverting significant resources to its Time to Pay (TTP) offering for individuals and businesses who may struggle to pay tax bills in full. Where personal circumstances support it, a TTP arrangement can help to spread payments by instalments. This can give people a means to settle old enquiries and plan for the future. 

One of the most heavily publicised tax avoidance areas is the disguised remuneration loan charge. At the time of writing, there is a deadline of 30th September 2020 for taxpayers to file their information return, 2018/19 tax return (if they have not done so already) and pay the tax due in respect of the loan charge. This is fast approaching and so if you are yet to consider your options and how the recent loan charge review impacts you, now is the time.

With all of this in mind and given all the recent legislative changes, please see our latest factsheet regarding the hot topics and how we can help and support you. This is updated to reflect the 11 March 2020 budget and subsequent Finance Bill 2020 publication.

This above was written by our Tax colleagues in BDO LLP's Tax Dispute Resolution team. The BDO NI tax experts are here to help with any query you may have.

Download: Tax Avoidance Review