HMRC issues a further warning about tax avoidance schemes designed to avoid the 2019 loan charge on disguised remuneration, saying that these schemes do not work…

Despite earlier warnings, promoters continue to market loan charge tax avoidance schemes.

They claim that by entering the scheme, disguised remuneration loans are paid off, and may also claim that the scheme is not disclosable under the disclosure of tax avoidance schemes regime (DOTAS), and may have benefited from a QC opinion.

HMRC is warning taxpayers to beware of any suggestion a disguised remuneration loan can be ‘paid off’ or ‘repaid’ without a real consequence to the transaction.

The HMRC view is that the disguised remuneration loan charge legislation addresses attempts such as these to avoid the rules, as it disregards any non-monetary repayments. This means the outstanding loan balance will be subject to the charge. The legislation also excludes any repayments connected to a tax avoidance arrangement.

Tax Avoidance Schemes can be a real minefield. Shan Sohal Accountants can help advise you the best course of action with such matters. Of course, the best way to ensure all your tax affairs are in order is to appoint a reputable tax accountant. Shan Sohal Chartered Accountants in Surbiton, Surrey have many years experience in all aspects of taxation.

Contact us today for more advice and a free initial consultation.


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