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 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.

A charge on disguised remuneration loans, known as the loan charge, was introduced to tackle the use of disguised remuneration schemes and came into effect on 5 April 2019. The charge applies to loans made after an including 9 December 2010, if they were still outstanding on 5 April 2019.

Anyone who wants to settle their disguised remuneration scheme use, can do so under the 2020 settlement terms.

Guidance for tax agents and advisers

Detailed information about the settlement terms for disguised remuneration can be found in the 2020 disguised remuneration settlement terms.

Loan charge review


Find out how to settle your tax affairs, report and pay the disguised remuneration loan charge or claim a refund of certain payments of voluntary restitution.

Disguised remuneration schemes in the spotlight

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

Useful information

Further information about disguised remuneration schemes and the loan charge, including some facts and figures.

Published 7 November 2017
Last updated 17 December 2020 + show all updates
  1. Disguised remuneration: tax avoidance by selling future business revenues to a revenue service trust (Spotlight 57) added to the collection.

  2. The guidance 'Apply for a refund or waiver from the Disguised Remuneration Loan Charge Scheme 2020' has been added to the page.

  3. First published.