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Transfer of loan charge from Employer to Employee

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    Transfer of loan charge from Employer to Employee

    Apologies if this has already been covered on the forum.

    I found this quite a good explanation.

    April 2019 Loan Charge – Transfer of liability to employees | C3Insight

    This is the HMRC technical note.


    One slight positive to come out of this is that employees won't have to pay any NICs.

    So come Janaury 2020 I will only have to pay income tax with no Class 1 NICs due?

    Will the 2019 charge ignore years where you were employed or self-employed and just tax the loans as an income lump sum?

    E.g. if I settled now I'd have to pay Class 4 NICs as I was self-employed for some years.


      I think the charge would still include NICs for the periods where you were self-employed.