18 Jun Settlement opportunity – contractor loans
The deadline to apply for the contractor loans settlement opportunity is 30 June 2015. The contractor loan scheme is a tax avoidance arrangement where non-UK employers have paid an employee untaxed income or given them a loan instead of part of their salary. The settlement opportunity is for tax years up to and including 2010-11. A final settlement must be agreed by 30 September 2015.
The settlement opportunity is open to individuals who have used a contractor loan scheme but is not available to individuals who are:
- subject to HMRC’s criminal investigation policy
- subject to civil investigation of fraud procedures
- UK employer who has used an Employee Benefit Trust and should be using the employee benefit trusts settlement opportunity.
Taxpayers that do not avail of the settlement opportunity are likely to face more scrutiny from HMRC and may end up paying more income tax and / or national insurance contributions.
Jennie Granger, HMRC’s Director-General for Enforcement and Compliance said:
'I urge anyone who has used Contractor Loans to contact HMRC. Not only will you have peace of mind as you’ll have certainty about what you need to pay, but it will save you going to Court.'