Lack of response from Prime Minister to loan charge letter is an affront to those suffering - Greg Wright

So far, 144 Parliamentarians have signed an open letter to Mr Johnson and Mr Sunak which has been compiled by the Loan Charge and Taxpayer Fairness All Party Parliamentary Group, and placed in the public domain over the summer.

The letter’s message must concern everyone who takes mental health problems seriously.

It states that “if HMRC enforce the loan charge, it will inevitably lead to thousands of bankruptcies...We are also concerned about the mental health impact, with the fact that there have been suicides of people facing the loan charge previously.”

So far there has been no reply to this letter, according to the APPG.

The issue was also raised in a written question by Daisy Cooper, the Liberal Democrat MP, who asked the Chancellor how many people who were liable for the loan charge have taken their own lives.

In reply, Financial Secretary to the Treasury, Lucy Frazer said HMRC has referred eight cases to the Independent Office for Police Conduct (IOPC) where a taxpayer has sadly taken their life and used a disguised remuneration scheme, as required by the law governing the IOPC’s oversight of HMRC. Following referral, HMRC has conducted independent investigations and the completed investigations have concluded that there was no evidence of misconduct by an HMRC officer.

She added: “Any loss of life is a tragedy, and my thoughts are with the families of those affected.”

In the letter, Ms Frazer said the Government takes concerns about the wellbeing of all taxpayers seriously and recognises that the loan charge can add significant pressures for some taxpayers.

She added: “Following Lord Morse’s Independent Loan Charge Review, the Government has taken further steps to mitigate the impact of the Loan Charge and to ensure that the right support is in place for those who need it.”

The Loan Charge Action Group has also written to Lord Morse with new evidence which it claims demonstrates that the conclusions of his review are fundamentally flawed and must be revisited. I’ve made a number of attempts to contact Lord Morse to seek his views on this letter. So far I have not had a response.

For those facing the loan charge, the anguish continues. They include an IT software consultant contractor, who lives near Sheffield, and said he has been living in limbo since 2017 and trying to live as cheaply as he can “in fear of what is going to happen”.

He added: “ I’ve been a law-abiding citizen and was brought up by my parents to pay off debts and to be honest and true.

“This makes me feel a total failure and like I’ve let everyone and especially my family down. It breaks my heart, and I won’t lie that at times I’ve thought of ending it all like I know some people have.”

“I spoke to the umbrella company and was assured it was all 100% legal and even vetted and approved by a tax lawyer every year to ensure HMRC compliance.”

HMRC has said it is right to tackle these type of avoidance schemes as they deprive public services of vital funding.”

The spokesman added: “We encourage anyone who is worried about paying the Loan Charge to contact HMRC so they can help. HMRC are committed to working with taxpayers to enter manageable payment plans to spread their tax liability and ensure that they are affordable.”

So why does the Government’s failure to reply to the APPG’s letter matter? The answer is simple. We live in a democracy where taxation should be based around consent and Parliamentary oversight.

In order to restore trust, at least one of them should write a detailed response to the concerns expressed by some of our most respected Parliamentarians.

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Thank you

James Mitchinson