HMRC has confirmed that Loan Charge settlements are available to people with outstanding liabilities, offering 50 per cent reductions on bills and, in some cases, reducing them to zero. The tax authority is urging eligible households to claim, with the new settlement scheme capable of cutting bills by up to £70,000.
Who is eligible and how to respond
Anyone who does not settle will have to pay the full amount of the Loan Charge, HMRC has warned. The authority is writing to eligible customers and is asking anyone who receives a letter from their caseworker to respond as soon as possible.
These arrangements can be complicated and take some time to work through, which is why every customer has a named contact they, or their agent, can speak to. Jonathan Smith, Director of Counter Avoidance at HMRC, said: “We want to help people draw a line under their loan charge liability and reach a resolution - but that can only happen if you talk to us.
“Some people will see their bills reduced to zero and that is why we need them to engage with us. Our message is simple: get in touch so we can help you resolve this.”
Details of the settlement terms
Bills could be reduced by up to £10,000 for each year a customer used an avoidance arrangement. HMRC will also remove late payment interest and apply a £5,000 reduction to every customer’s bill, the tax arm has said.
Customers who cannot pay in full straight away will be able to agree a payment arrangement based on what they can afford. Anyone who settles under the new terms can choose to pay over five years, with longer arrangements available depending on their circumstances.
Next steps for affected households
Smith added in a statement issued on Thursday (September 3): “You don’t have to wait for your letter from us - you can contact your named caseworker at any time to discuss the settlement opportunity.” Eligible customers are encouraged to contact their named caseworker promptly, as the settlement process can take time to work through.
