HMRC changes policy on time-to-pay arrangements
The loan charge in respect of historic use of "disguised remuneration" schemes is one of the most controversial enforcement policies in existence. If you owe money under the rules, why might a quiet change in policy relating to repayment arrangements?
If you owe tax in respect of disguised remuneration settlements and the loan charge, you’ll want to know about HMRC’s recent change of policy on time-to-pay arrangements . These tax debts automatically qualified for a time-to-pay arrangement over five years if your earnings were less than £50,000 per year or, where the loan charge applies, seven years if you earned less than £30,000.
HMRC will now use your most recent complete tax-year information available to determine if you’re eligible for the automatic time-to-pay deals and generally for other personal tax debts. The new criteria will apply to future time-to-pay arrangements but will not affect those which already exist.
Although the automatic time-to-pay deals don’t apply to those whose earnings exceed than £50,000 per year, HMRC says that it will consider flexible payment plans that can be amended over time to take account of changes in your circumstances.
Related Topics
-
Practical guide: Tax-efficient will planning with residential property
An individual has a significant property portfolio which provides them with their sole source of income. They want to gift shares in some property to their daughter but retain the income. Can they do this without triggering the reservation of benefit rules?
-
Will HMRC treat late processed invoices as errors?
Your business processes invoices when they have been approved by budget holders, so some will be processed a month late, delaying your input tax claim. How might HMRC’s updated guidance help here?
-
Are redundancy payments tax deductible?
A seemingly simple question we’re often asked is how much tax relief a business is entitled to for redundancy payments. The answer is that it depends on the situation. How might the circumstances of a redundancy affect the tax deduction?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.