Personal Debt

2019 Loan Charge

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It's a change that will leave many people with large bills to pay

A recurring issue that we are dealing with more and more frequently is the 2019 ‘loan change’ which is due to come into effect in April 2019. This change in legislation essentially seeks to address what HMRC describes as Disguised Remuneration, by creating a tax charge on ‘loan schemes’ should the loans within the schemes not be repaid by April 2019.

The intention being to bring an individual’s tax position in line with what it would have been should the participant in the scheme have been a salaried employee. The loan charge provides a vehicle for HMRC to take action against loan arrangements that were designed to avoid tax; a change that will leave many people with large bills to pay.

How can ICS help with the 2019 Loan Charge

As it stands, the legislation is due to come into force in April 2019. This will create a significant impact for many people in the UK.

The creation of the loan charge liability will cause many people to immediately become subject to a significant HMRC debt. It is unlikely that all those subject to the loan charge debt will have the immediate means to settle the amount due, therefore as like any other unsecured debt, the loan charge liability will have a significant detrimental impact on an individual’s financial position.

HMRC have published criteria with regards to settlement terms. However, should you not meet the criteria set out by HMRC, it is still possible to enter into settlement negotiations and we can help you with this process.

However, if a negotiated settlement with HMRC is not a viable option, perhaps because of other personal debts such as loans or credit card debts also needing to be dealt with, we can advise and assist on personal insolvency solutions too.

So far, we have advised a number of individuals whose financial stability has been called into question due to the 2019 loan charge. If you have received correspondence from HMRC regarding the 2019 loan charge or you think that you will be adversely affected once the loan charge comes into force, we are here for you. We will undertake an initial brief review of your personal financial position and provide you with some tailored information as to the options available to you and what you can expect each option to look like. Following this initial review, should you wish to formally engage us to act on your behalf then we will gather detailed information from you and advise on the most appropriate solution for you.

The Loan Charge Action Group (LCAG)

We are pleased to announce Ideal Corporate Solutions as nominated advisors for the Loan Charge Action Group membership (www.hmrcloancharge.info).

This is a fantastic reflection on the skills, knowledge and professionalism of Ideal Corporate Solutions. Whilst LCAG continue in their campaigning against the 2019 Loan Charge, ICS are here to provide independent insolvency advice to members who want to better understand their options including insolvency options as well as negotiated settlement with HMRC. 

Get in touch

We have set up a dedicated email account for all loan charge enquiries. If you are affected by the 2019 Loan Charge, please contact us on loancharge@idealcs.co.uk for further information on how we may be able to assist.

Alternatively, visit our contact us page and fill in the form to get in touch or give our team a call on 0800 731 2466.

Get in touch