HMRC has issued guidance for anyone affected by third parties seeking repayment of disguised remuneration loans from contractors who may have already paid the Loan Charge. In most cases, the request for repayment is because the original provider of the loan has sold the outstanding loans to a third party.
Some of these third parties are now contacting users of the scheme to demand repayment of their outstanding loans – even if users believed they would not be asked to repay the loans. This is despite the fact that you might have also:
- paid the loan charge
- arranged a settlement agreement with HMRC for the outstanding tax
- be liable to the loan charge, but have yet to pay it
You can read HMRC’s guidance here. Basically, it states that whilst HMRC sympathise and understand the distress caused by receiving such repayment demands, even if you have paid the loan charge, there is nothing HMRC can do to intervene. This standpoint is incredibly disappointing and if HMRC were genuinely sympathetic then it would have been a quick-win for them to stipulate that any arrangements liable to the loan charge cannot be called for repayment by third parties.
If you are affected by third parties requesting repayment, you should seek independent legal advice. IWORK recommends our partner WTT Consulting, a firm that has vast amounts of experience in this area.