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<p>The Government estimates that 50,000 individuals were affected by the Loan Charge
and that following the implementation of the Loan Charge Review’s recommendations,
about 11,000 will be taken out of its scope altogether, and more than 30,000 will
benefit from the changes. One significant change is to allow taxpayers to split their
loan balance evenly across three tax years.</p><p> </p><p>People will not to have
to pay their Loan Charge debts in one go. Where a taxpayer cannot pay in full on time,
HMRC will seek to agree payment by instalments with them. The payment plan agreed
will be based on what the taxpayer can afford and there is no upper limit over how
long HMRC can potentially spread payments.</p><p> </p><p>HMRC will not require payment
of more than 50% of disposable income, aside from where taxpayers have very high disposable
incomes. Where a taxpayer has no disposable assets and earns less than £50,000, they
are automatically entitled to a minimum of a five-year payment plan, and where they
earn less than £30,000, a minimum of seven years. HMRC have also committed that they
will not force a taxpayer to sell their main home or release their existing pension
to fund a disguised remuneration or Loan Charge tax bill.</p><p> </p><p>HMRC have
established a dedicated team to handle enquiries from Loan Charge taxpayers. Any taxpayer
unable to pay in full and needing a payment plan should contact the Loan Charge helpline
on 03000 599110.</p>
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