Disguised remuneration 12 - Amount of disguised remuneration to be treated as income of an earlier year

Only complete this box if your business ceased before 6 April 2020, but not earlier than 6 April 2014, and you are electing to have your outstanding disguised remuneration loan treated as income arising at the date you ceased trading.

Put the total amount of loan chargeable to Income Tax in the 2020 to 2021 tax year in this box and the earlier tax year in which it is to be treated as arising in the box below it. If you're carrying back amounts to more than one year of cessation because you had more than one ceased trade, put the total amount in this box and the latest year of cessation in the box below it.

In the 'Any other information box', tell us the amounts associated with each year of cessation.

There will be an adjustment needed to increase your tax for 2020 to 2021 because you're claiming to pay tax on your disguised remuneration income by reference to the year, or years, your business, or businesses, ceased.

Calculate the difference between the actual liability for the earlier year and the liability that would have arisen for the earlier year if the disguised remuneration income had been included in the return for that year. The adjustment relates to 2020 to 2021 even though it is calculated by reference to the circumstances of the earlier year. If you need help, ask us or your tax adviser.

Enter the difference in the 'Increase in tax due because of adjustments to an earlier year' box in the 'Adjustments to tax due' section.

Do not include amounts where you have reached full and final settlement with HMRC on a disguised remuneration loan.

For more information on the disguised remuneration loan charge and the amounts to include in your 2020 to 2021 tax return, go to Disguised remuneration: guidance following the outcome of the independent loan charge review.