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HM Revenue and Customs gov.uk

Find out about the loan charge settlement scheme

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Who is eligible for the settlement scheme

This scheme applies to you if you’re an individual or an employer and you have a disguised remuneration loan charge liability that you have not paid in full. This includes Income Tax, National Insurance contributions and late payment interest that arose:

  • because of the loan charge — normally in the tax year ending 5 April 2019
  • when the loan charge income, normally in the form of loans, was received in earlier tax years (6 April to 5 April)
  • because of the loan charge and was included in a settlement agreed to after 1 June 2021

    • HMRC will write to the people we believe are eligible, with an offer to settle their outstanding loan charge liability under this scheme.

  • loan details and any other income we’ve used to calculate your settlement offer

    • HMRC is not required to make offers to those it suspects of being promoters or introducers of avoidance arrangements.

    Subject to a maximum £70,000 reduction, the settlement offer:

  • uses a simplified calculation to work out an amount that represents the tax and National Insurance due on your loan charge income, in the tax year you received that income — this may reduce the amount due
  • deducts a further £5,000 from your liability
  • will not include the late payment interest, Inheritance Tax liabilities and most penalties applied to your original loan charge amount

    • If an employer should have deducted PAYE

    If payments were made by an employer who was responsible for deducting PAYE from an employee’s loan charge income, we’ll:

  • try to settle the loan charge liability with the employer first — if they still exist
  • write to the employee at the same time as the employer with an offer

    • If we cannot settle the liability with the employer, we’ll write again to the employee and may need to send them a new offer.

    The employee can accept their settlement offer straight away if either:

  • they want to settle now and do not want to wait while we try to settle the loan charge with the employer

    • This is an extract. The publication continues at the source.

    Contains public sector information licensed under the Open Government Licence v3.0. Licence

    Read the original at the source: https://www.gov.uk/guidance/find-out-about-the-loan-charge-settlement-scheme

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    HM Revenue and Customs — imported from official source
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    https://www.gov.uk/government/organisations/hm-revenue-customs.atom ATOM
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    October 08, 2026 11:00
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    https://www.gov.uk/guidance/find-out-about-the-loan-charge-settlement-scheme#2026-10-08...

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