HMRC issue briefing: settling disguised remuneration scheme use and/or paying the loan charge
This briefing provides information about disguised remuneration avoidance schemes and how people can settle their use of them and/or pay the loan charge that has been introduced to tackle their use.
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The government hasannounced a new independent review of the Loan Charge at Autumn Budget 2024.
The terms of reference for the review have now been published itsby responsethe government.
The toreview commenced on 23 January 2025 and will be led by the independentreviewer loanand chargehis reviewteam, inindependent Budgetof 2025. government and HMRC.
HMRC ishas reviewingalso whatpublished thisan meansupdate for customers andon youoperational canactivity findduring the latest update herereview., now the terms of reference have been published.
Disguised remuneration schemes are arrangements that pay loans instead of ordinary income to avoid Income Tax and National Insurance contributions.
The loan charge has been introduced to tackle the use of disguised remuneration schemes.
People who anticipate having difficulty paying what they owe under the loan charge will be able to agree a manageable payment plan with HMRC depending on individual circumstances. There is no limit, and people will be given as long as they need to pay what they owe.
This issue briefing sets out information about the loan charge and explains how HMRC will help customers settle their disguised remuneration and/or loan charge liabilities.
Updates to this page
Last updated 26
-
Page updated after publication of government response to the independent loan charge review in Budget 2025.
Update history
2025-11-26 17:15
Page updated after publication of government response to the independent loan charge review in Budget 2025.
2025-01-27 16:48
Page updated to reflect the recent publication by the government of the terms of reference for the new independent review of the Loan Charge.
2024-10-30 14:33
Page updated to reflect government’s announcement that there will be a further independent review of the loan charge.
2023-04-11 09:30
Updated with latest information to help customers settle their disguised remuneration liabilities including an update to the reference year used for determining automatic eligibility to pay by instalments.
2022-04-11 11:00
Updated with latest information to help customers settle their disguised remuneration liabilities, and with our operational plans for April 2022 to March 2023.