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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. On average loan scheme users have twice as much income as
the average UK taxpayer, when taking into account the loan they received.</p><p> </p><p>HMRC
is working hard to help individuals get out of tax avoidance for good and are encouraging
anyone who is concerned about their ability to pay to contact them as soon as possible
to discuss their options. HMRC has set up a dedicated helpline for those wanting to
settle their avoidance scheme use, and discuss payment options.</p><p> </p><p>HMRC
does not want to make anybody bankrupt and very few cases ever reach that stage. They
will work with all individuals to reach a manageable and sustainable payment plan
wherever possible.</p><p> </p><p>HMRC has simplified the process for those who choose
to settle their use of avoidance schemes before the loan charge arises, so that those
earning less than £50,000 a year and are no longer engaging in tax avoidance can agree
a payment plan of up to five years without the need for detailed supporting information.
There is no maximum period within which an overall settlement can be agreed, and all
individual cases will be dealt with appropriately and sympathetically.</p><p> </p><p>Since
the announcement of the 2019 loan charge at Budget 2016, HMRC has agreed settlements
on disguised remuneration schemes with employers and individuals of over 650 million
pounds. More than 90% of this amount was collected from employers, with less than
10% from individuals.</p>
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