UK: New HMRC enforcement campaign targets directors’ loans
Key issues and practical steps for directors to consider
HM Revenue & Customs (HMRC) is writing to company directors who, between April 2019 and April 2023, held a loan that was released or written off and which might have been omitted from their tax return.
The HMRC announcement focuses on the director’s personal tax position. But directors’ loans can also give rise to employment tax and company tax issues, and how a director responds to HMRC’s “nudge” letter could, potentially, trigger a broader enquiry into both the director’s and the company’s tax compliance positions.
Read a July 2025 report prepared by the KPMG member firm in the UK that summarizes key issues and practical steps for directors, and the companies with which they hold office, to consider, regardless of whether a “nudge” letter is received.