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<p>Disguised Remuneration (DR) 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>The Government estimates that around 50,000 individuals could
be affected by the 2019 loan charge. Further information on who the charge affects
can be found at page 17 of HM Treasury’s report on time limits and the charge on disguised
remuneration loans:</p><p> </p><p><a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/789160/DR_loan_charge_review_web.pdf"
target="_blank">https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/789160/DR_loan_charge_review_web.pdf</a>.</p><p>
</p><p>This shows, for example, that 65% of the DR user population worked in business
services, and only 3% worked in medical or education services.</p>
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