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<p>Disguised Remuneration schemes are contrived arrangements that pay loans in place
of ordinary remuneration with the sole purpose of avoiding income tax and National
Insurance contributions. When taking into account the loan they received, loan scheme
users have on average twice as much income as the average UK taxpayer.</p><p> </p><p>HMRC
data indicates that fewer than 3% of those affected work in medical services (doctors
and nurses) and teaching. Further information can be found in HMRC’s issue briefing:
<a href="https://www.gov.uk/government/publications/hmrc-issue-briefing-disguised-remuneration-charge-on-loans/hmrc-issue-briefing-disguised-remuneration-charge-on-loans"
target="_blank">https://www.gov.uk/government/publications/hmrc-issue-briefing-disguised-remuneration-charge-on-loans/hmrc-issue-briefing-disguised-remuneration-charge-on-loans</a>.</p><p>
</p><p>HMRC is working hard to help individuals to get out of tax avoidance for good.
HMRC does not want to make anybody bankrupt and very few cases ever reach that stage.</p><p>
</p><p>HMRC has simplified the process for those who choose to settle their use of
avoidance schemes before the charge arises, so that those earning less than £50,000
a year and 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 HMRC will deal with individual
cases 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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