Just half of contractors hit by ‘loan charge’ settle with taxman ahead of April deadline

Just half of contractors hit by 'loan charge' settle with taxman ahead of April deadline

Tens of thousands of self-employed consultants caught up in HMRC’s loan charge crackdown are yet to settle, it has emerged.

Of the 50,000 people set to be hit by the charge on so-called disguised remuneration tax avoidance schemes, just 26,800 have registered to settle ahead of the April 5 cut-off date.

The arrangements, which were common in the early 2000s and were widely accepted as legal, usually involved receiving income in the form of a tax-free loan. A change in the law in 2016 allowed HMRC to issue tax demands on the loans dating back to 1999.

The crackdown has been branded “retrospective” by the House of Lords Economic Affairs Committee which said it risked undermining access to justice…

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