2020 news

The Low Incomes Tax Reform Group (LITRG) is warning people that they have until next Wednesday (30) to meet their loan charge reporting and payment obligations. The tax campaign group is particularly urging anyone who has worked through 'umbrella' companies to double-check whether they are liable to the loan charge.

From this month, the first of 6.3 million Child Trust Fund accounts can be accessed. If you have turned 18 since 1 September 2020, you may have access to funds which have been locked away since you were born. LITRG has published new guidance on what you need to know.

The loan charge is a tax charge that needs to be reported and paid by the 30 September 2020. If you worked through an umbrella company in the past, you may have been paid through arrangements that are caught by the loan charge – although you may not have realised this was the case.

Given the current unprecedented jobs and income situation, it is likely that some people could now pay less loan charge by way of the three-year spreading provisions, because one of those three years will be 2020/21.