Missed the 30 September loan charge deadline? Don’t panic – help is still available
The loan charge date of 5th April 2019 is drawing ever closer. HMRC say that if you want to reach a settlement with them to avoid the loan charge but missed the 30 September registration deadline, you should still come forward. Although HMRC cannot now guarantee to be able to reach a settlement with you before the loan charge arises, the earlier you get in touch with HMRC, the more chance there is of them being able to deal with you before the 5th April 2019.
Last month, we published a news piece 'Are you affected by the 2019 ‘loan charge’? Help is available' explaining the background to the loan charge, what it is and where to get help.
The article looked at the help HMRC were offering to those affected, in the form of their settlement terms. HMRC asked those who wanted to ‘settle’ their tax affairs to let them know and provide all of the information required to calculate a settlement by 30th September 2018. This was to ensure there was enough time to process the settlement before the loan charge comes into effect on 5th April 2019.
What if you want to settle with HMRC but didn’t manage to meet the 30th September deadline?
HMRC say that they would still like people who have missed the deadline to come forward. While it may not now be feasible to reach a settlement with you ahead of the loan charge arising, HMRC tell us they will do their best to do so. It is not like previous settlement opportunities where they had a strict cut-off date, after which you could no longer take advantage of the terms offered.
It goes without saying that the earlier you send HMRC the information, the more chance there is of reaching a settlement before the loan charge arises.
You can find more information in the 'settling your tax affairs' page on GOV.UK.
You may also be interested to read a recent article in which HMRC answer questions from workers affected by the loan charge. The article can be found in two parts on the Contractor UK website. Part one is here and part two is here.
HMRC are also keen encourage people who are already in the settlement process with them to finalise settlements as early as possible to prevent them being caught up in a last minute rush, in the run up to the loan charge taking effect from the 5 April 2019.