Loan written off: are you in HMRC’s crosshairs?
HMRC is writing to directors that took a loan from their company that was later written off or released. What should you do if you receive a letter?
-
Government rushes through NI cap on pension salary sacrifice
The government has already drafted legislation to impose a £2,000 limit on NI exempt pension contributions under salary sacrifice arrangements. What else do we know?
-
Sneaky change is a blow for side hustles
With most of the media focused on the headline-grabbing announcements from the Budget, a read of the published small print reveals another change coming in 2029. It’s bad news if you are an employee with a side hustle, but what’s going on?
-
Sole Trader Versus Company - Beta Test
A calculator for working out your business profits as sole trader or a company
The letters are being sent to taxpayers who:
- had a director’s loan that was written off or released between April 2019 and April 2023; and
- did not declare the amount as income on their self-assessment tax return.
The amount released or written off is treated as an income distribution and is taxable at the appropriate dividend rates. If you do need to pay extra tax you can tell HMRC by using the digital disclosure service. This service can be used even if the loan was written off or released before April 2019, but for loans released or written off since 6 April 2023, you can simply amend your tax return to reflect the additional income.
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.