Earlier this month, HMRC updated their guidance on Contractor Loan Settlement Opportunity (CLSO). The updated HMRC page includes notes and information on how to find out what is owed and how to pay, settlement opportunities and how to take up this opportunity with HMRC. The guidance also includes a section on eligibility for the scheme.
HMRC state that ‘a contractor loan scheme is a tax avoidance arrangement where non-UK employers have paid you untaxed income or given you a loan instead of part of your salary.’
HMRC deem that tax may be due on this income and loans, and contractors using the scheme until April 2011 now have the benefit of settling the income tax HMRC deems due on ‘the best possible terms’.
Previously, the CLSO was only available until January however the opportunity is currently open until 30 June for contact to HMRC and settlement by 30 September 2015. If HMRC deem tax is due and contractors don’t take this opportunity, HMRC has warned that penalties will become due on assessments made.
If you have been involved in these loan schemes, HMRC’s guidance has been published: https://www.gov.uk/government/publications/tax-on-contractor-loans/tax-on-contractor-loans
As always, we should remind you that all Green Lantern services are fully UK based and tax is deducted at source on all taxable earnings. If you would like more information about how we can provide you comfort and peace of mind that you are being paid by a fully UK compliant, fully audited organisation, please contact us on 0207 164 2116.