TaxSep 7 2020

Taxpayers warned ahead of looming deadline

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Taxpayers warned ahead of looming deadline

Taxpayers subject to the taxman’s controversial loan charge now have less than a month to settle their debts with HM Revenue and Customs.

Accountancy firm UHY Hacker Young has reminded those affected by the charge that they have until September 30 to file their 2018/19 self-assessment tax returns and negotiate a settlement or face a penalty.

The deadline for settling the debt with the taxman was originally January 2020, but a damning review in December last year prompted HMRC to overhaul the process and treatment of those subject to the loan charge, postponing the deadline to September 2020.

UHY Hacker Young has warned taxpayers that despite a softened stance on the charge, the taxman is very unlikely to have a “last-minute change of heart”.

John Sheehan, partner at UHY Hacker Young, said: “September 30 is still the deadline that really matters. It isn’t going to change its stance further or drop the loan charge.

“If you have been caught by the loan charge, it’s important not to bury your head in the sand. The longer you leave it, the less likely you will be able to agree a settlement with HMRC.”

UHY Hacker Young also noted that paying the full loan charge did not write off the original loan, so taxpayers could still be required to pay back the loan, and it did not mean HMRC would necessarily “leave you alone” as they have the right to pursue any open tax enquiries.

Taxpayers were also urged to ensure they settled with the taxman by September 30, as HMRC’s current settlement opportunity is its ‘best offer’ and is offering payment flexibility but the taxman could levy late payment penalties past this date.

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