HMRC Spotlights identify specific tax avoidance schemes and which HMRC consider are not likely to have the legal effect desired by those thinking of using them. According to HMRC, the Spotlights series is designed to help taxpayers avoid unwittingly entering
into arrangements that HMRC are likely to see as tax avoidance.

In the Spotlights series HMRC:

• Provides information on tax planning schemes, listing indicators that may flag tax avoidance and are schemes that HMRC is likely to investigate.
• Identifies specific schemes which, in HMRC’s view, are not likely to deliver the tax savings advertised. Where HMRC see such schemes being used, subject to the particular facts, they will make a challenge and seek to ensure full payment of the right tax
  on the right due date.

HMRC has recently published a new Spotlight; Spotlight 44 – Disguised remuneration: schemes affected by the loan charge. This spotlight reminds taxpayers to settle their use of disguised remuneration schemes before the loan charge arises in April
2019.

The charge (known as the 2019 loan charge) will apply to all loans made since 6 April 1999 if they are still outstanding on 5 April 2019. The charge will not arise on outstanding loans if the individual has agreed a qualifying settlement with HMRC before
5 April 2019.

HMRC is offering instalment plans to help some of those that will be most affected to help settle their affairs. HMRC will agree instalment plans of up to 5 years with taxpayers who have expected current year income of less than £50,000 and who are no longer
involved in tax avoidance.

HMRC will work with other affected taxpayers to come to a suitable arrangement. The final deadline for submitting all the required information is 30 September 2018.

Source: New feed