Contractor loan schemes – HMRC offers settlement opportunity

 

 

Have you ever used a contractor loan scheme or alternative arrangement to be paid more tax efficiently than your salary?

If you have then you are probably now in receipt of correspondence from HMRC, offering you the chance to pay the tax and national insurance that you should have paid on the loans you have received.

This could be a substantial amount, however, the main thing we are telling people is not to panic – there are things you can do.

If you have a loan outstanding and you have the funds to repay it, then we advise that you do so before March 2019. You will still have to notify HMRC of the arrangement but the tax charge that arises on that date will not apply.

If you cannot repay the loan, then you need to understand what your potential exposure to tax and National Insurance will be. We can help you with that and arrange for a settlement contract to be agreed with HMRC.

Once the formalities are concluded, you can arrange to pay the amount you owe over a longer period of time and, depending on your circumstances, this could be five years or more.

So, if you think you may be affected by this and need some help to settle the matter, please get in touch with Julie Walsh (julie.walsh@pmm.co.uk or 01254 604312) as soon as possible.

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