Where to enter Disguised Remuneration?

What is Disguised Remuneration?

Disguised remuneration schemes are the arrangements that pay loans instead of ordinary income, to avoid Income Tax and National Insurance contributions. Disguised remuneration can be described as earned income received via a scheme as a loan or some other non-taxable distribution which disguises the payment of income. The result was to bring arrangements which replaced salary with an interest free loan made to an employee (that might never be repaid) by a third party (such as an employee benefit trust) into the charge to income tax and National Insurance contributions.

Where to enter the Disguised Remuneration on the tax return?

Depending on which income type this relates to, will depend on the relevant location within the form. This is broken down by income type below and based on the method of data entry. Please note, we would recommend you refer to the HMRC guidance here. 

SimpleStep mode:

Employment:

1. Browse to Your Work > Employment > Pay received and Tax paid
2. Tick the box for Does any of this income include any disguised remuneration income? (Please note, this box is available for years 2021 and prior)

Self Employment

1. Browse to Your Work > Self Employment > Full Form - Details > Other Adjustments (Note this box is not available on the short form)
2. Enter the amount in question in the box labelled Any disguised remuneration additions to profits?

For both income types, you should also complete the below on the Other Information page.

HMRC Forms mode:

Employment:

1. Browse to Additional Information > Page 4 > Input the details required in box 21.

Self Employment

1. Browse to Self employment > Page 4 > enter an amount in box 75.1. Note this box is not available on the short form.
2. Browse to Additional Information > Page 4 > Input the details required in boxes 22-24.

There is further guidance from HMRC on the following link:  Report and account for your disguised remuneration loan charge.