The April 2019 loan charge was called into question once again last month when an MP raised concerns over the possibility of thousands of workers being made bankrupt because of the retrospective measures.

Stephen Lloyd MP, who represents the Liberal Democrats, branded the legislation as ‘immoral’ and ‘unfair’, and said that doctors, independent nurses, teachers, freelancers and contractors may all suffer as a result of it.

In case you are not aware of the bill and what exactly it constitutes, below Walsh Taylor summarises the main points:

In definition

Hidden away in last year’s lengthy Finance (No2) Act was a tax change that could impact any organisation that had benefited from employee benefit trusts (EBTs) in the past. Under the new measures, all loans made in the name of previously-disguised remuneration schemes could become subject to charges.

Will I incur a fee?

Unless you repay an outstanding loan (from an arrangement like an EBT, for example) or settle it with the HMRC before 5th April 2019, then the answer to the above question may well be yes. This is now treated as taxable income, and it is caused by the balance that has built up over the past two decades. It is therefore worth seeking advice if you are in this situation.

The regulation is not necessarily ‘fair’

Many have argued that the regulation is not fair as it punishes contractors rather than going after those that either recommended (e.g. accountants) or ran the schemes. Contractors who acted in good faith could now potentially face six-figure bills.

As outlined in one of our most recent articles, the Leeds, Harrogate, Bradford and Darlington-based teams here at Walsh Taylor are keen to stress that you can get in touch with us as soon as you foresee any future financial problems.

If after reading about the April 2019 loan charge you would like some free, confidential advice, please do not hesitate to call 03300 244 660.

Mary Taylor

Mary began working in insolvency for a national accountancy practice in Glasgow thirty years ago and worked in most divisions of the insolvency department.

She then moved to a smaller firm so she could advance her knowledge on a more hands on basis. She moved back to Leeds in 1987 and commenced working with a small firm of accountants and subsequently made partner.

She left in 1999 to set up her own practice, McCann Taylor.
McCann Taylor became involved with the consumer market both in England and Scotland.

Mary sold McCann Taylor in March 2007 and formed Walsh Taylor to concentrate on helping businesses experiencing financial difficulties.

Meg Heath

Meg has a background in supporting SMEs, including the raising of finance and advising on organisational change. She is a non-executive director of companies in the private and third sector, including Walsh Taylor.

Previously she was Deputy Fund Director of one of the largest CDFIs in the UK, and has experience of the social enterprise, charity and private sectors. Her experience of assisting companies to survive and thrive has been gained across a broad range of sectors and in companies of all sizes.

In addition to her work at Walsh Taylor she works for other private companies, including non-executive and trustee positions.

Emma Mifsud
Insolvency Practitioner

After graduating from Leeds University in 2005 with a BA Hons degree in Criminology, Emma worked for a regional law firm in both the property department and insolvency and banking department. Whilst doing so Emma gained a Graduate Diploma in Law at BPP University.

Emma then joined a national accountancy firm in 2009 gaining experience in personal insolvency before moving to a Leeds based firm. At this firm Emma specialised in bankruptcies, IVA’s and negotiating informal agreements with creditors. In 2013 Emma gained her CPI qualification.

Since joining the firm in December 2013, Emma has taken on a portfolio of personal and corporate insolvency cases to extend her knowledge and expertise in all areas of insolvency.

In December 2017 Emma become a licensed appointment taker under the Insolvency Practitioners Association, she is JIEB qualified.

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