Why Mel Stride must respond to our reader's concerns over loan charge - Greg Wright

You’re a successful and respected Yorkshire entrepreneur who has built up a business empire which has provided employment for thousands of people.

You’ve worked tirelessly for decades to pay your suppliers and staff on time. As a pillar of society, you would never dream of attempting to avoid your duties as a taxpayer.

But now - in the twilight of your career - you are facing a final demand for around £300,000 and a threat of bailiffs at the end of the month.

The businessman facing this financial crisis - who is well known in the region but has asked to remain anonymous - contacted me after reading my previous commentary about the loan charge, a controversial policy which has left taxpayers ranging from company directors to locum nurses with life-changing bills.

“I feel this is going to end badly for many,'' said the businessman. "My accountant fears the worst. I have never known such a scandal in my entire life. I am appalled at what’s happening with the loan charge. It’s like a third world country.”

Over the last 18 months, I’ve been contacted by dozens of people who are facing the loan charge. All of them said they were in deep distress, Some had contemplated suicide. All of them said they had acted on professional advice. Some - especially those in the public sector - didn’t know their pay involved loan schemes.

They will understand the plight of the Yorkshire businessman, who said: “I’d like to think I’ve made a positive contribution to society, having employed thousands of people.

“I’m no fool which is why I took professional advice when starting consulting in 2011,’’ he said. “Or maybe I am for listening to professional accountants, which is why I find my current position so tragic.

“I declared everything, as advised, and if I had been told at the time by HMRC that there was a problem, I wouldn’t be facing what I am.”

The Loan Charge All Party Parliamentary Group (APPG) remains deeply concerned about the mental health of many people affected as the loan charge declaration deadline looms on September 30.

Members of the APPG have written to the Chancellor Rishi Sunak proposing what they describe as a fair and affordable settlement opportunity that taxpayers could enter into without admitting wrongdoing.

A Government spokesperson has stressed that it was the “view of HMRC” that loans made through these schemes have always been taxable.

HMRC has said it has to be fair to all taxpayers, and this includes those who have already settled their use of what the Treasury describes as “disguised remuneration” tax avoidance schemes or have never used them in the first place.

Given the widespread concern about the loan charge, the Treasury Select Committee must hold the Government’s feet to the fire and demand answers about how this policy was devised and implemented.

Mel Stride, who is the committee’s chairman, played a major role in introducing the loan charge in his previous role as a Treasury minister.

Last year, he said he would approach all consideration of the Government’s policies in relation to disguised remuneration “in an entirely fair and open-minded spirit”.

Mr Stride has, however blocked people on Twitter who mention the loan charge, including me.

Last week, a spokesman for Mr Stride had to “convey regret” that Mr Stride had not replied to a letter sent in February by one of our readers to the Treasury Select Committee.

The letter - which was sent again in April without reply - raises concerns about the retrospective nature of the loan charge..

No reader of The Yorkshire Post should have to endure a seven month wait for a reply from a leading MP to a polite and pertinent letter about a policy which - to quote the Morse review - caused “serious distress”.

When Mr Stride responds to our reader, I will be delighted to place the letter’s contents in the public domain.

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Thank you

James Mitchinson