Loan Charge Articles

marketing | 17 September 2019
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The controversial loan charge, which affects contractors who participated in ‘disguised remuneration’ schemes, could be scrapped after Chancellor Sajid Javid commissioned an official review into the tax.

The new review will conclude by mid-November to give taxpayers certainty ahead of the January Self Assessment deadline. It will be led by Amyas Morse, the former chief executive of the National Audit Office.

Can Boris Johnson Save Contractors?
marketing | 1 August 2019
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Boris Johnson has won the tentative support of contractor and freelancer organisations, but experts have urged the new PM to improve the economy and support the self-employed.

The Association of Independent Professionals and the Self-Employed (IPSE) called on the Brexit-supporting leader to keep the economy flexible and competitive in the run up to Britain’s exit from the EU.

In a statement, they called on Mr Johnson to reform the tax system and scrap damaging changes to IR35, reduce the retrospective nature of the loan charge and help stamp out late payments among other policies. 

Treasury: 2019 Loan Charge Will Go Ahead Despite Appeals
marketing | 4 April 2019
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The Treasury has confirmed that the 2019 Loan Charge will take effect this week, despite appeals from MPs, members of the House of Lords and Loan Charge campaigners.

HMRC released a last-minute statement on Wednesday, reminding Loan Scheme users that they have an obligation to pay the tax owed.

The statement urged users of disguised remuneration schemes to come forward and settle their debts by April 5. The tax authority also said that ‘flexible’ payment options are available to those that worry they will not be able to pay.

 

HMRC’s ‘Crusade Against Contractors’ to Net £27.7m
marketing | 12 August 2019
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Investigations into the contractor employment status could generate close to £30m according to figures released by HMRC.

The data shows that HMRC believes it can generate an extra £27.7m before investigations are concluded. The figure refers to ‘tax under consideration,’ which is an estimate of what HMRC would lose if it didn’t investigate.

Treasury Collects £1bn from Contractor Loan Charge
marketing | 23 May 2019
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The Financial Secretary to the Treasury this week confirmed that HMRC has collected £1bn from the loan charge, with most of the money coming from contractor employers.

Answering questions in parliament, Mel Stride said that 85% of the £1bn so far collected came from employers. He added that the average salary of the employees impacted was double the national average.

Taking effect this tax year, the loan charge is levied on contractors involved with one type of disguised remuneration scheme.

 

FSB Backs Review on 2019 Loan Charge

The Federation of Small Businesses (FSB) has come out in support of a review on the ‘unfair’ application of the 2019 Loan Charge.

Earlier this month, Sir Ed Davey successfully tabled and passed an amendment calling on the government to review the retrospective contractor charge before March 31st.

Announced at Budget 2016, the Loan Charge applies to any disguised remuneration loans that are still outstanding on 5 April 2019.