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Transfer of liability for the 2019 Loan Charge

Source: WhatDoTheyKnow
Authority: HM Revenue and Customs
Status: The request was successful .
Imported path: /opt/loancharge/imports/wdtk/requests/transfer_of_liability_for_the_20

Open original request on WhatDoTheyKnow

Imported text

SOURCE: WhatDoTheyKnow
SOURCE_URL: https://www.whatdotheyknow.com/request/transfer_of_liability_for_the_20
TITLE: Transfer of liability for the 2019 Loan Charge
AUTHORITY: HM Revenue and Customs
AUTHORITY_URL: https://www.whatdotheyknow.com/body/hmrc
STATUS: The request was
successful
.
REQUEST_SLUG: transfer_of_liability_for_the_20
CAPTURED_AT: 2026-05-19T07:17:37+00:00
PROVENANCE: {"first_seen_at": "2026-05-18T12:51:34", "first_seen_page": "2", "first_query_term": "\"Loan Charge\"", "first_date_after": "2018/01/01", "first_date_before": "2019/01/01", "matched_query_terms": "\"Loan Charge\" | \"disguised remuneration\"", "matched_date_ranges": "2018/01/01 to 2019/01/01", "first_search_url_template": "https://www.whatdotheyknow.com/search/%22Loan%20Charge%22/requests?commit=Filter&query=%22Loan+Charge%22&request_date_after=2018%2F01%2F01&request_date_before=2019%2F01%2F01&request_variety%5B%5D=sent&request_variety%5B%5D=response&request_variety%5B%5D=comment&sortby=&utf8=%E2%9C%93&page="}

ATTACHMENTS:
- FOI2018_01737_Final.pdf | https://www.whatdotheyknow.com/request/transfer_of_liability_for_the_20/response/1228407/attach/2/FOI2018%2001737%20Final.pdf?cookie_passthrough=1 | application/pdf | 154535 bytes
- [not downloaded] | https://www.whatdotheyknow.com/request/transfer_of_liability_for_the_20/response/1228407/attach/html/2/FOI2018%2001737%20Final.pdf.html |  | 0 bytes

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MESSAGE 1 [outgoing]
HEADER: Andrew Saunders
7 August 2018
Delivered
--------------------------------------------------------------------------------
Dear HM Revenue and Customs,
The 2019 Loan Charge legislation allows (under certain circumstances) the charge to be collected through a transfer of liability from employer to employee.
1. how many individuals do HMRC estimate will require the tax liability to be transferred from the employer to the individual using the 2019 Loan Charge? (presumably this has been done to estimate the resources required for the task)
2. of those individuals how many are estimated to have the liability transferred to them because their employers are no longer in existence?
Yours faithfully,
Andrew Saunders

================================================================================
MESSAGE 2 [incoming]
HEADER: foi.team@hmrc.gsi.gov.uk on behalf of FOI Central Team,
        HM Revenue and Customs
8 August 2018
--------------------------------------------------------------------------------
Our ref: FOI2018/01737
Dear Andrew Saunders,
Freedom of Information Act 2000 Acknowledgement
Thank you for your communication of 7th August which has been passed to
HMRC's Freedom of Information Team.
We have allocated the above reference which you should quote if you need
to contact us.
The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.
Yours sincerely
HMRC Freedom of Information Act Team

================================================================================
MESSAGE 3 [incoming]
HEADER: foi.team@hmrc.gsi.gov.uk on behalf of FOI Central Team,
        HM Revenue and Customs
5 September 2018
--------------------------------------------------------------------------------
1 Attachment
FOI2018 01737 Final.pdf
150K
View
Download
Dear Mr Saunders,
I am writing in response to your request for information, received 7
August 2018.
Yours sincerely,
HMRC Freedom of Information Team

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ATTACHMENT TEXT EXTRACTION / OCR
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ATTACHMENT: FOI2018_01737_Final.pdf
TEXT_FILE: FOI2018_01737_Final.pdf.txt
METHOD: pdf_native
OCR_USED: False
PAGES: 2
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--- PDF page 1 ---
Information is available in large print, audio and Braille formats. 
Text Relay service prefix number – 18001 
 
 
 
Counter-Avoidance 
Freedom of Information Team 
S1715 
6 Floor 
Central Mail Unit 
Newcastle Upon Tyne 
NE98 1ZZ 
Mr Andrew Saunders 
By email: request-508363-
957db12a@whatdotheyknow.com 
Email 
foi.request@hmrc.gsi.gov.uk 
Web 
www.gov.uk 
Date: 5 September 2018 
 
Our ref: 
FOI2018/01737 
 
 
Dear Mr Saunders 
 
Freedom of Information Act 2000 (FOIA) 
 
Thank you for your request, which was received on 7 August, for the following information: 
 
The 2019 Loan Charge legislation allows (under certain circumstances) the charge to be 
collected through a transfer of liability from employer to employee. 
 
1. how many individuals do HMRC estimate will require the tax liability to be transferred from 
the employer to the individual using the 2019 Loan Charge? (presumably this has been done 
to estimate the resources required for the task) 
 
2. of those individuals how many are estimated to have the liability transferred to them 
because their employers are no longer in existence? 
 
Pay As You Earn (PAYE) liabilities fall on the employer in the first instance. The charge on 
Disguised Remuneration (DR) loans will not change this principle and HMRC will pursue 
employers who have used DR schemes for the tax that is due. HMRC will only go to the 
employee to settle their income tax liability in cases where it cannot reasonably be collected 
from the employer, for example where the employer is no longer in existence. 
 
The number of cases where liability will be transferred from the employer to the individual 
will be dependent on the number of people who come forward to settle their tax affairs 
before April 2019. DR ‘settlement terms’ were published on 7 November 2017 and we are 
currently working with those who have come forward to resolve their tax affairs. Further 
information is available at: www.gov.uk/government/publications/disguised-remuneration-
detailed-settlement-terms/disguised-remuneration-detailed-settlement-terms 
 
Although no formal estimates have made regarding the number of cases where liability is 
expected to be transferred from the employer to the individual or where the employer is no 
longer in existence this has been considered as part of the overall resourcing requirements 
in respect of the settlement of DR cases. 
 
Information regarding the resources required to support the settlement of DR cases is 
available in our response to the following information request published on 
whatdotheyknow.com at: https://www.whatdotheyknow.com/request/settlement_resources

--- PDF page 2 ---
2 
If you are not satisfied with this reply you may request a review within two months by 
emailing foi.review@hmrc.gsi.gov.uk, or by writing to the address at the top right-hand side 
of this letter. 
 
If you are not content with the outcome of an internal review, you can make a complaint to 
the Information Commissioner’s Office (ICO). Instructions about this process are available at 
the following link: https://ico.org.uk/concerns/ 
 
 
Yours sincerely, 
 
Freedom of Information Team