Disguised remuneration tax avoidance schemes
Find out how to recognise disguised remuneration tax avoidance schemes and settle your tax affairs with HMRC.
Disguised remuneration tax avoidance schemes aim to avoid paying Income Tax and National Insurance contributions by paying part or all of your pay as a:
- loan
- salary advance
- grant
- annuity
These payments are claimed to be non-taxable, often without explanation.
The government announced at Autumn Budget 2024 that there will be a further independent review of the loan charge, to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. HMRC will consider what updates need to be made to relevant guidance once the government announces further details about the review and once the review has concluded.
The loan charge legislation remains in force. If you have agreed a payment plan with HMRC you should continue to pay the amounts you have agreed to pay while the review is ongoing.
Settlement terms
The 2020 settlement terms allow you to settle your use of a disguised remuneration scheme.
Issue briefing
Guidance
Find out more on how to settle your tax affairs, and how to report and pay the disguised remuneration loan charge.
Identifying tax avoidance schemes
You can also find out more information in tax avoidance — don’t get caught out and tax avoidance schemes currently in the spotlight.
Changes to the loan charge
Updates to this page
Last updated 30 October 2024 + show all updates
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Page updated to reflect government's announcement that there will be a further independent review of the loan charge.
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Disguised remuneration: tax avoidance by selling future business revenues to a revenue service trust (Spotlight 57) added to the collection.
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The guidance 'Apply for a refund or waiver from the Disguised Remuneration Loan Charge Scheme 2020' has been added to the page.
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First published.