Loan Charge

I welcome the steps that the Government is taking to ensure that everybody pays the taxes they owe and contributes to the services they use with measures such as the 2019 Loan Charge. 

The Loan Charge is expected to bring in more than £3 billion for public finances over the next five years. This will build upon the more than £200 million of additional revenue secured and protected from tax avoidance, evasion, and non-compliance since 2010. 

I believe disguised remuneration schemes are an aggressive and contrived form of tax avoidance which cost the taxpayer hundreds of millions of pounds each year, depriving our vital public services of funding. A recent impact report found that three-quarters of those affected are employers rather than individuals. However, I understand that those individuals who face large tax bills resulting from the Loan Charge may find this situation stressful to deal with and therefore it is important that they receive appropriate support.  

To ensure this, there have been several provisions to support those affected. The decision in 2016 to grant three years amnesty afforded those affected with the opportunity to agree a settlement with HMRC and avoid being subject to the charge before it came into force. During this three-year period, HMRC have settled over 6,000 cases, raising around £1 billion for public finances. Additionally, those on an income of less than £30,000, provided they came forward before the charge came into effect, can have a minimum of seven years to pay, while those under £50,000 can have at least five years to pay. 
  
I am assured that HMRC will treat individual cases sympathetically and appropriately, agreeing payment terms which take full account of individuals' ability to pay.