Policy paper

HMRC issue briefing: disguised remuneration charge on loans

This briefing provides information about disguised remuneration avoidance schemes and a charge that has been introduced to tackle their use.



Disguised remuneration schemes are arrangements that pay loans instead of ordinary income to avoid Income Tax and National Insurance contributions.

A new charge on outstanding disguised remuneration loans, known as the 2019 loan charge, has been introduced to tackle the use of these schemes.

It applies to anyone who has used one of these tax avoidance schemes and who hasn’t repaid their loan, agreed settlement, or are in the process of agreeing settlement with HM Revenue and Customs (HMRC).

People who anticipate having difficulty paying what they owe under the 2019 loan charge will be able to agree a manageable payment plan with HMRC depending on individual circumstances. There is no limit, and people will be given as long as they need to pay what they owe.

This issue briefing sets out more information on the loan charge and outlines advice for those subject to the loan charge.

Published 18 July 2018
Last updated 7 June 2019 + show all updates
  1. Content updated after the loan charge took effect on 5 April 2019.
  2. This issue briefing has been substantially updated.
  3. First published.