HMRC's Loan Charge Linked to 10 Suicides, MPs Warn of Another Horizon Scandal
60,000 Workers Affected by Back Tax Demands, MPs Call for Independent Review
- The HMRC's loan charge, a tax crackdown on freelancers and agency workers, has been linked to 10 suicides and an abortion, with MPs warning of another scandal akin to the Post Office Horizon scandal.
- 60,000 workers, including nurses, teachers, and IT contractors, are affected by the loan charge, which demanded back tax payments on loans received through tax-saving schemes.
- MPs accuse HMRC of targeting the victims of the loan charge schemes, who were often forced into these schemes by their employers, instead of pursuing the promoters of these schemes.
- MPs are calling for a 'genuinely independent review' into the loan charge scandal, expressing concerns that HMRC may have influenced the 2019 review which concluded the charge should remain in place.
- Despite MPs supporting a non-binding motion for a fair resolution and full independent investigation, Treasury minister Nigel Huddleston stated he did not believe the case had been made for another review.