Covid-19 2019 Loan Charge 2020-05-18
2020-05-18
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Questions & Answers
Q1
Direct Answer
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Context
The question concerns the possibility of suspending or deferring the implementation of the 2019 loan charge during the ongoing pandemic.
What assessment has been made regarding the potential merits of suspending the 2019 loan charge during the current covid-19 outbreak?
Taxpayers with loan charge liabilities can defer submission of their tax return until 30 September this year. HMRC has always worked hard to support taxpayers needing help managing disguised remuneration liabilities, and this continues during the coronavirus situation.
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Q2
Direct Answer
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Context
The question delves into the estimated revenue that can be expected from the loan charge policy amidst an economic downturn.
Considering we will face a recession in September, given the hundreds of billions committed by Treasury to support business recovery, what does the Minister estimate he will now raise from the £3.2 billion originally forecasted?
The Treasury published its estimate at the time of the original tax information release. While acknowledging the passion behind the issue, it is important to note that 99.8% of taxpayers do not engage in disguised remuneration schemes and supporting people's jobs and livelihoods does not justify letting off tax owed.
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