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<p>Disguised remuneration (DR) loan schemes are contrived arrangements that pay loans
in place of ordinary remuneration with the sole purpose of avoiding income tax and
National Insurance contributions. The loans are provided on terms that mean they are
not repaid in practice, so they are no different to normal income and are, and always
have been, taxable.</p><p> </p><p>Individuals, working for public bodies, identified
in the course of HMRC’s compliance work as using a tax avoidance scheme would be investigated
in the same way as any other scheme user.</p><p> </p><p>The Government estimates that
around 50,000 individuals could be affected by the charge on DR loans. The charge
applies to all users of DR tax avoidance schemes, it does not single out a specific
group or industry. It is possible for individuals to use DR tax avoidance schemes
without the participation or knowledge of the entity that engages them.</p><p> </p>
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