Loan charge has 'undeniable link’ with suicides and self harm, say MPs: Greg Wright

Taxation, like policing, must be based around consent and parliamentary oversight.

A letter sent by Jim Harra, the chief executive and First Permanent Secretary of HMRC, to one of the largest cross-party Parliamentary groups merits close attention. The Loan Charge & Taxpayer Fairness All Party Parliamentary Group, which has repeatedly called for a full independent inquiry into the loan charge, contacted Mr Harra because it was seeking more information about reported suicides linked to this controversial policy. Earlier this year, Treasury minister Victoria Atkins confirmed that HMRC had made 10 referrals to the Independent Office for Police Conduct (IOPC) in relation to individuals who had taken their lives and had used DR (disguised remuneration) schemes. Ms Atkins told MPs in February: “In the eight concluded investigations, no evidence has been found of misconduct by any HMRC officer, but we are very sensitive to the pressures that people are under, which is precisely why we have the extra support teams in place.”

Ms Atkins said the loan charge was introduced to draw a line under the historic use of disguised remuneration (DR) schemes which paid income in the form of loans via third parties. A Government spokesman said “significant changes” had been made to the loan charge following a review in 2019 which reduced its impact, although campaigners, including the APPG, still believe the policy is punitive and flawed.

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In his reply to the latest letter sent by the APPG, Mr Harra states: “Since March 2019 HMRC has made 24 referrals to the IOPC where HMRC was advised of a serious injury to a customer who had used a disguised remuneration (DR) scheme (these relate to 20 customers). HMRC has made 13 referrals to the IOPC where HMRC was advised the customer had attempted to take their own life and that customer had used a DR scheme (these relate to 10 customers).”

The Loan Charge & Taxpayer Fairness All Party Parliamentary Group said: "There is considerable evidence, some of it in the public domain, that makes clear the undeniable link between the controversial retrospective Loan Charge and suicides, attempted suicides and serious self-harm as well as depression, anxiety and breakdown. We have raised this many times." (Photo by PA)The Loan Charge & Taxpayer Fairness All Party Parliamentary Group said: "There is considerable evidence, some of it in the public domain, that makes clear the undeniable link between the controversial retrospective Loan Charge and suicides, attempted suicides and serious self-harm as well as depression, anxiety and breakdown. We have raised this many times." (Photo by PA)
The Loan Charge & Taxpayer Fairness All Party Parliamentary Group said: "There is considerable evidence, some of it in the public domain, that makes clear the undeniable link between the controversial retrospective Loan Charge and suicides, attempted suicides and serious self-harm as well as depression, anxiety and breakdown. We have raised this many times." (Photo by PA)

The APPG said in a social media post: “There is considerable evidence, some of it in the public domain, that makes clear the undeniable link between the controversial retrospective loan charge and suicides, attempted suicides, and serious self-harm as well as depression, anxiety and breakdown.”

I continue to uncover evidence of the deep distress linked to the loan charge. A man affected by the loan charge told me: “I had suicidal thoughts over the early days of the implementation of the loan charge, but thanks to the support of my family, I am in a better place. Like the many thousands that are caught up in all this, I did nothing wrong. We took professional advice and now find ourselves in this terrible predicament.”

In his letter to the MPs, Mr Harra stressed that HMRC takes the wellbeing of all customers very seriously. He added: “We recognise that dealing with tax issues, and in particular tax disputes or debt, can be distressing. HMRC is committed to learning and making improvements to avoid causing undue stress and, wherever possible, identify customers who need extra help.”

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Pressure on the Government to find a “fair resolution” to the loan charge saga is likely to intensify as the APPG uncovers more evidence of families being pushed to breaking point.

Greg Wright is the deputy business editor of The Yorkshire Post

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