Policy paper

HMRC issue briefing: disguised remuneration charge on loans

This briefing provides information about disguised remuneration avoidance schemes and the loan 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.

The loan charge has been introduced to tackle the use of disguised remuneration schemes.

People who anticipate having difficulty paying what they owe under the 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 affected by the loan charge.

Published 18 July 2018
Last updated 19 November 2020 + show all updates
  1. Updated after the publication of settlement terms for the loan charge.

  2. Updated to provide further information on what customers affected by the loan charge should do now the 30 September 2020 deadline has passed.

  3. Updated to provide further information on payment support options and add more explanation about return filing arrangements.

  4. Updated to include changes announced in July 2020, and the loan charge review.

  5. Content updated after the loan charge took effect on 5 April 2019.

  6. This issue briefing has been substantially updated.

  7. First published.