Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support he plans to give to people who experienced mis-selling of schemes that are now subject to the Loan Charge.
While the Government sympathises with anyone who believes they were misled into using a disguised remuneration (DR) scheme, it is an individual’s responsibility to ensure the accuracy of their tax return and to understand the consequences of their decisions. It remains right that the Government takes action to tackle tax avoidance, which is unfair to the vast majority of taxpayers who pay the correct tax.
HM Revenue and Customs (HMRC) have been clear on their commitment to support all taxpayers who may need help to pay their Loan Charge liabilities. Where a taxpayer cannot afford to pay in full on time, HMRC will seek to agree payment by instalments with them. The payment plan agreed will be based on what the taxpayer can afford and there is no upper limit over how long HMRC can potentially spread payments.
HMRC have published settlement terms for taxpayers subject to the Loan Charge. These settlement terms are available on GOV.UK at: https://www.gov.uk/government/publications/disguised-remuneration-settlement-terms-2020/disguised-remuneration-settlement-terms-2020.