When do the new HMRC disguised remuneration rules bite?
Our Head of Disputes & Forensics, Liz Coleman answers an IT contractor’s question on the Contractor UK website.
“In terms of timing, a consultation did indeed close last month and the general expectation now is that this legislation will be enacted around the time of the Autumn Statement on 23 November.
As this could happen, and if it does it would happen with retrospective effect, we’d recommend contractors consider whether to settle the liability with HMRC now, on the most favourable terms that can be secured. The only other obvious way of avoiding this charge would be to repay the loan before April 2019 – in cash – which is not likely to be a particularly palatable or practical solution for many contractors. We also recommend that regardless of which option you’re leaning towards, you take enlist a reputable, experienced and commercially-savvy adviser at the earliest opportunity.”