Investments  

HMRC collects £1bn from loan charge

It emerged yesterday that HMRC has made several arrests in relation to new schemes offering people to avoid the loan charge.

One example was to have the company that issued the loan (the company the employee set up) engage in a "bet" with the employee, whereby if the employee wins the bet, the loan is cancelled and counted as having been repaid, meaning the employee is not liable to pay the loan charge.

HMRC warned: "We strongly encourage people not to use loan-busting schemes and methods.

"They clearly don’t work and people run the risk of losing more money and being involved in fraud. As we always say – if it looks too good to be true, then it undoubtedly is."

david.thorpe@ft.com