Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the number of people working in the public sector that are subject to the 2019 loan charge; and if he will make a statement.

Disguised Remuneration (DR) schemes are contrived arrangements that pay loans in place of ordinary remuneration, with the sole purpose of avoiding income tax and National Insurance contributions. The loans are provided on terms that mean they are not repaid in practice, so they are no different to normal income and are, and always have been, taxable.

The Government estimates that around 50,000 individuals could be affected by the 2019 loan charge. Further information on who the charge affects can be found at page 17 of HM Treasury’s report on time limits and the charge on disguised remuneration loans:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/789160/DR_loan_charge_review_web.pdf.

This shows, for example, that 65% of the DR user population worked in business services, and only 3% worked in medical or education services.