Earnr AI, your new tax assistant, is here. Check it out now!
Stressed by tax?
Get Earnr Pro

Loan Charge

[ləʊn ʧɑːʤ]



A Loan Charge is a tax for individuals who were previously paid with a loan that was never intended to be paid back. The individual or employer may be liable.

More detail:

A Loan Charge is a tax in the United Kingdom that is placed upon people involved in Disguised Renumeration schemes. It was introduced in 2019 to allow HMRC to recoup lost revenue from these people.

When the Loan Charge was first introduced, it was a single charge of 45% on all disguised loans from 1999 to 2019. However, the rules have now changed to only apply to loans from December 2010 to present.

The tax liablities fall on the employer if they set up the scheme. However, if the employer no longer exists, the Employee is liable to pay

Back to Taxionary

You might also like...

decorative image for a blog

Submit your 22/23 Tax Return Before January 31st

January 31st is the deadline for submitting 2022/23 tax returns. It's a good idea to complete your tax return ahead of this deadline to avoid mistakes and potential penalties. This article shows why its a good idea to submit your tax return early and how Earnr can help you if you are stuck.

Read more
decorative image for a blog

We asked Earnr AI why you should use Earnr…. here’s what it said…

We recently introduced our newest addition to the Earnr team; our AI chat bot, Earnr AI. In this article we put Earnr AI to the test and asked it why you should use Earnr as your tax companion, bookkeeping tool and tax return assistant. Read it's excellent response!

Read more
decorative image for a blog
December 20, 2023
Tax essentials

Why should you submit your tax return over the Christmas period?

The festive period is often thought of as the busiest time of the year with the run up to Christmas and New Year. Whilst this period can feel hectic at times, it can also be seen as the perfect time to complete your tax return. In this article we explain why this Christmas time is the best time to submit your 22/23 tax return.

Read more
Earnr logoDownload earnr