Given the current unprecedented jobs and income situation, it is likely that some people could now pay less loan charge by way of the three-year spreading provisions, because one of those three years will be 2020/21.
HMRC have sent out 'notices to file' to people who they believe may have to report and pay the loan charge by the forthcoming 30 September 2020 deadline.
A recent HMRC announcement that five people have been arrested on suspicion of fraud in connection with promoting arrangements designed to get around the loan charge, has been welcomed by the Low Incomes Tax Reform Group (LITRG). This follows repeated recommendations by the group urging HMRC to not ...
Guidance and draft legislation on the loan charge, following Amyas Morse’s independent review and the government response, have now been published. The headline is that the loan charge remains in place, although some changes have been made. We await further clarification on some aspects from HMRC, ...
LITRG is calling on HMRC to consider using their powers to remove the requirement that those in the loan charge settlement process – who have not settled by 31 January 2020 – should have to file a tax return to report the charge, only to amend it to remove the charge once settlement is reached.
The loan charge review was originally expected to report in mid-November. Due to the general election on 12 December, the report will now be delivered to the new Government on its formation instead. It could therefore easily be January before any decisions are made. As a result, HMRC have published updated guidance announcing new obligations for many people in the settlement process.