PARLIAMENTARY WRITTEN QUESTION
Public Sector: Tax Avoidance (6 June 2019)
Question Asked
Asked by:
Grant Shapps (Conservative)
Answer
Disguised Remuneration (DR) schemes are contrived arrangements that pay loans in place of ordinary remuneration, with the sole purpose of avoiding income tax and National Insurance contributions. The loans are provided on terms that mean they are not repaid in practice, so they are no different to normal income and are, and always have been, taxable.
The Government estimates that around 50,000 individuals could be affected by the 2019 loan charge. Further information on who the charge affects can be found at page 17 of HM Treasury’s report on time limits and the charge on disguised remuneration loans:
This shows, for example, that 65% of the DR user population worked in business services, and only 3% worked in medical or education services.
Answered by:
Jesse Norman (Conservative)
11 June 2019
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