If you’re in a disguised remuneration scheme, the loan charge announced at Budget 2016 applies to all disguised remuneration loans outstanding on 5 April 2019.

To record the tax owed in Sage 50 Payroll, you can set up a notional payment that's subject to tax. The tax calculates on the notional payment and the employee's other taxable earnings. This acton will not increase the actual gross value, just the taxable gross value.

Set up the notional payment

1. Click Company then click Pay Elements.
2. Click New then, in Description, enter a name for the payment.
3. In the This payment is subject to section, select the Disguised Remuneration check box.
   • This selects the PAYE check box by default. This setting can't be changed.
4. In the This payment is subject to section, select or clear the check boxes as appropriate.
5. Click OK.

Assign the new payment to an employee record

1. Double-click the relevant employee, then click the Employment tab.
2. Click Pay Elements, then click the Payments tab.
3. On the drop-down list, click the required payment and click OK.
4. If required, enter the relevant hours and rate and click Save.
5. Click Save, then click Close.

Add a pay element to multiple employees

1. On the Employee List, click the relevant employee.
2. On the menu bar, click Tasks then click Global Changes.
3. Click Payments, then Add Payment.
4. Select the required payments, then click OK.
5. Click Yes, then click OK.