• Anyone who wants to elect to spread their disguised remuneration loan balances evenly across the 2018 to 19, 2019 to 20 and 2020 to 21 tax years also needs to do so by 30 September 2020. They can do this using the same online form on GOV.UK. • By 30 September 2020 customers also need to have filed their 18/19 tax return and either to have paid their 2018 to 2019 liability in full or agreed a Time To Pay arrangement. They should call the Loan Charge helpline on 03000 599110 as soon as possible to make a TTP arrangement.
Missing the deadlines above can result in customers being charged late filing penalties and/or interest for the period 1 February 2020 to 30 September 2020.
On the 13 August 2020 HMRC set out how its debt management processes work, which includes detailed examples of how the department agrees time to pay arrangements.
HMRC will work with anyone worried about their ability to pay the Loan Charge to help them find solutions and access support.
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No extension to the Loan Charge deadline 15 September 2020
In a written response to a question relating to the Loan Charge, Financial Secretary to the Treasury, Jesse Norman has confirmed that the government does not have any intentions of extending the Loan Charge declaration deadline, and it remains as 30 September 2020. Individuals must confirm, to HMRC, where they had disguised remuneration loans that are subject to the Loan Charge, by 30 September 2020, at the very latest. Those who are subject to the loan charge, who have not yet filed their tax return or agreed a settlement with HMRC are required to submit a Self-Assessment tax return for the tax year 2018-19 with details of their outstanding disguised remuneration loans. The option was provided to either submit the return for 2018-19 by 31 January 2020, providing a best estimate of the tax due, or alternatively, to file by 30 September 2020. Any penalties for late filing and payment of the tax return for 2018-19 will be waived by HMRC as long as the return is filed by the end of September 2020. There will be no late payment interest applied for the period from 1 February 2020 to 30 September 2020, provided that a return is filed accurately, and any tax paid, or an agreement made with HMRC to do so, by the September deadline date.
The announcement was made by HMRC that the deadline would be extended from 31 January 2020 to 30 September 2020, back in December 2019. Mr. Norman stated:
“This deadline has long been established and the extension has given taxpayers an additional eight months to file their returns and decide whether to make an election to spread their Loan Charge liability over three years. Loan Charge taxpayers are able to file a full and accurate 2018/19 Self Assessment return by the 30 September 2020 deadline. The Government has no plans to extend the deadline beyond 30 September 2020. HMRC will keep the situation under review and will take a proportionate and reasonable approach to anyone who is unable to file their tax return and pay the tax due or agree a time to pay arrangement by the 30 September 2020 deadline as a direct result of COVID-19.”
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HMRC webinar: company directors – payroll and you 21 September 2020
HMRC has published additional dates for its webinar, ‘company directors – payroll and you’, which will be hosted live.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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