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
-
HMRC reminds employers about payrolling benefits deadlines
HMRC is reminding employers of key dates and preparations ahead of the transition to real-time payrolling of benefits in kind (BiKs). With an important voluntary registration deadline approaching, what do payroll teams need to know?
-
Why do frozen mileage rates affect VAT?
Your business pays a fixed mileage allowance to staff who use their private cars for business travel. The rates published by HMRC have been frozen since 2011 but is this relevant to determine how much input tax you can claim on the payments?
-
HMRC restarts direct recovery of tax debts from bank accounts
HMRC has resumed use of its Direct Recovery of Debts (DRD) powers, enabling it to recover unpaid tax directly from the bank accounts of businesses and individuals who have ignored repeated attempts to settle outstanding liabilities. What does this mean in practice for business owners and directors?