HMRC Contractor Loan Schemes Settlement Opportunity
Contractor Loan Schemes are considered by HMRC to comprise Tax Avoidance Schemes promoted by tax advisers solely for the purpose of avoiding tax on income paid by an employer to the contractor, often through a chain of trusts, which is never repaid. On this basis the “loan” is actually income and must be declared to HMRC on your tax return. A Settlement Opportunity offered in 2011 expired in 2016 and the current Settlement Opportunity expires on 5 April 2019.
Contractor Loan Schemes work in a similar fashion to Employee Benefit Trusts and are therefore, in the eyes of HMRC, Disguised Remuneration Tax Avoidance Scheme. On this basis Contractor Loan Schemes fall foul of the Finance Acts 2017 and will be subject to a Disguised Remuneration Loan Charge from 5 April 2019.
If you are a contractor and wish to disclose the scheme and take advantage of the Settlement Opportunity offered, YOUR Contractor Loan Scheme will need to be disclosed by 31 December 2018.
At Francis Wilks & Jones we have considerable experience of negotiations with HMRC, including Accelerated Payment Notices, Personal Liability Notices, VAT Security or any other claim - including appeals to Tax Tribunals or insolvency claims by Liquidators and defending Director Disqualification Claims.
Please call any member of our Tax Disputes team for your consultation now on 020 7841 0390. Alternatively email us with your enquiry at firstname.lastname@example.org and we will call you back at a time convenient to you.