Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the maximum amount of time is that HMRC provides to people who cannot afford to pay the 2019 loan charge.

HMRC has published a specific arrangement for disguised remuneration (DR) scheme users who currently earn less than £50,000, are no longer in tax avoidance, and settle before the loan charge arises. In these specific circumstances HMRC will agree an extended payment arrangement of up to five years without the need for detailed supporting information about their income and assets.

DR scheme users who earn £50,000 or more, or who require longer, may still be able to pay in instalments over periods in excess of 5 years if agreed with HMRC. There is no maximum amount of time that a person can have, to settle their avoidance scheme debt – any agreed payment plan should be affordable and specific to an individual’s personal circumstances. These payment arrangements will be tailored to an individual’s financial circumstances so HMRC will require more detailed supporting information.

Anybody who is worried about being able to pay what they owe should get in touch with HMRC.