Tax avoidance: disguised remuneration

Use this guidance to help you recognise disguised remuneration tax avoidance schemes and settle your tax affairs with HMRC.

Disguised remuneration tax avoidance schemes claim to avoid the need to pay Income Tax and National Insurance contributions. They normally involve a loan or other payment from a third-party which is unlikely to ever be repaid.

These schemes are used by employers and individuals. If they’re used by contractors, they’re often known as contractor loans.

If you’re in a disguised remuneration scheme, you should settle your tax affairs as soon as possible. If you don’t, the new loan charge announced at Budget 2016 will apply to all disguised remuneration loans outstanding on 5 April 2019.


Find out how to settle your tax affairs and pay HMRC what you owe before the new loan charge applies.

Guidance for tax agents and advisers

Detailed information about the settlement terms for disguised remuneration.

Disguised remuneration schemes in the spotlight

Information about new disguised remuneration schemes that you should avoid and schemes HMRC is aware of.

  1. Umbrella companies offering to increase your take home pay (Spotlight 45)
  2. Disguised remuneration: schemes affected by the loan charge (Spotlight 44)
  3. Contractor loan schemes: misleading advertising (Spotlight 42)
  4. Disguised remuneration: a Supreme Court decision (Spotlight 41)
  5. Disguised remuneration trust schemes: misleading advertising (Spotlight 40)
  6. Disguised remuneration: re-describing loans (Spotlight 39)
  7. Disguised remuneration: job board avoidance scheme (Spotlight 37)
  8. Disguised remuneration: schemes claiming to avoid the new loan charge (Spotlight 36)
  9. Disguised remuneration: tax avoidance using annuities (Spotlight 35)
  10. Contractor tax: loan schemes can cost you more (Spotlight 33)
Published 7 November 2017