CONSERVATIVE
New Forest East

TREASURY – LOAN CHARGE [42860] – 1 May 2020

Dr Julian Lewis: To ask the Chancellor of the Exchequer, if he will instruct HMRC to suspend the (a) pursuit and (b) enforcement of loan charge revenues until after the covid-19 outbreak.  [42860]

[Due for Answer on 11 May.] 

ANSWER

The Financial Secretary to the Treasury (Jesse Norman): There is currently no HMRC debt collection activity being pursued in relation to taxpayers in respect of the loan charge.

Where a taxpayer has included the loan charge on their 2018/19 tax return, HMRC will respond to any contact from them, including agreeing payment plans if requested, but will not initiate any contact or take any enforcement action ahead of the revised filing and payment deadline of 30 September 2020.

There does remain a risk that, with large scale delivery at pace, some taxpayers may be contacted in error. In that case, they should contact HMRC, who will confirm that they do not need to pay until the 30 September 2020 payment deadline.

HMRC have been clear on their commitment to support all taxpayers who need help to manage their disguised remuneration (DR) liabilities, including those affected by COVID-19.