Note this post is focused on ‘specialists’ who remained in employment-based umbrella business loan plans where the employer is offshore, or where the company no longer exists. (The term ‘contractor’ applies to firm workers in addition to greater paid short-lived workers, e.g. IT freelancers that you may more normally relate to the term.) Those with companies who are onshore and still in existence or who remained in trade-based plans, need to read our short article on AccountingWeb.
This is routinely upgraded to try and keep it as clear and easy to comprehend as possible and so that it reflects the existing position. We advise that you inspect back routinely to GOV.UK for any updates. The loan charge brings into the charge to tax all outstanding amounts of any ‘disguised compensation’ loans made given that 6 April 1999.
If you are not already in the settlement process, it is probably far too late to settle under HMRC’s November 2017 settlement terms. HMRC will think about truly exceptional extenuating scenarios however you ought to assume they will not extend those terms. If you are already in the settlement procedure then your HMRC contact will describe what, if any, more actions are required from you towards conclusion.
However there might still be a couple of supplementary benefits to settling outside the November 2017 terms depending upon your circumstances (such as that you might not require to finish the 30 September reporting requirements gone over below). You must call the HMRC loan charge group ASAP on ca.admin [at] hmrc.gov.uk or 03000 599110 if you desire to explore this even more.
You can discover more info and explanation around each of the actions listed below. To calculate the amount of your exceptional loans, you need to check any pay documents, payslips or other documents you got for work performed whilst utilizing loan plans. HMRC understand that some people did not even know that they remained in a loan scheme and so will not understand the amounts that they received in loans.
In these circumstances, you should do whatever you can to identify the quantity you got in loans. For example, by trying to call the umbrella business (or even the recruitment agency who might be able to point you in the ideal direction) or by taking a look at the circulation of cash into your checking account.