Save lives by suspending the loan charge, campaigners tell new Chancellor Sajid Javid

THE new Chancellor Sajid Javid can save lives by ordering an immediate suspension and review of a controversial Government policy, according to a group of MPs.

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I did consider suicide, says loan charge victimThe All-Party Parliamentary Loan Charge Group (APPG) argues that the charge is retrospective and overrides taxpayer protections - claims which had been rejected by the Treasury under the former Chancellor Philip Hammond.

Sajid Javid  Photo: Rick Findler/PA WireSajid Javid  Photo: Rick Findler/PA Wire
Sajid Javid Photo: Rick Findler/PA Wire

The MPs also claim that the charge poses a risk to the mental health of thousands of people.

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Workers such as locum doctors and nurses have been hit with unexpected tax bills of up to tens of thousands of pounds dating back to 1999

A number of people who have been affected by the loan charge have told The Yorkshire Post that they felt suicidal after facing the large tax bills.

The APPG said on Twitter: “We congratulate Sajid Javid on being appointed Chancellor of the Exchequer and urge him to end the Loan Charge Scandal which has already cost lives and damaged the reputation of the Treasury nationally and internationally. We need a suspension and independent review #STOPtheLoanCharge.”

It added: “We hope that the next Chancellor of the Exchequer will listen to the 209 Parliamentarians including 79 Conservatives MPs who are calling for an immediate suspension and independent review of the draconian and dangerous Loan Charge that has already cost lives #STOPtheLoanCharge”

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The loan charge was introduced in response to the Treasury’s concerns about “disguised remuneration schemes” which involved individuals being paid through loans, usually via an offshore trust in a low or no tax jurisdiction, which they did not have to repay.

According to the Treasury, the loan charge means people paying themselves through loans will have to contribute their “fair share” to pay for vital public services.

Members of the APPG have written to Sir Jonathan Thompson, the chief executive of HMRC, to express concerns about “the use of aggressive imagery and slogans with regard to the pursuit of people, including vulnerable people” by his department.

The MPs have been angered by Sir Jonathan’s failure to reply to a previous letter, sent on April 2, which expressed concern about HMRC’s behaviour in connection with the charge.

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At a hustings event, Boris Johnson, the new Prime Minister, said of those affected by the loan charge: “It seems superficially unjust that they should be retrospectively pursued..they need an independent review”.

A number of members of the new Cabinet, including Grant Shapps, the new Secretary of State for Transport, have previously signed an open letter calling for a delay and independent review into the loan charge.

During the leadership campaign, a group of Conservative MPs called on Mr Johnson and Mr Hunt to sign a pledge to suspend the loan charge.

The group of MPs - David Davis, Dame Caroline Spelman, Ross Thomson, Bob Neill, Philip Davies, Chris Green, Adam Holloway and Andrew Selous- -who are all members and supporters of the APPG, called on both of the candidates to agree to suspend the loan charge and to commission an independent review.

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A recent Treasury report into the loan charge said: “The Government is clear that the legislation is not retrospective.

“It applies a tax charge to outstanding DR (disguised remuneration) loan balances at April 5 2019. It does not change the tax position of any previous year, the tax treatment of any historic transaction, or the outcome of any open compliance checks. By the time of its introduction ..individuals will have had three years since the Budget 2016 announcement to act to stop it applying, either by settling their liability with HMRC or repaying their loans.

“The Government considers that the rationale for this charge is clear and robust, and has been consistently clear there is no intention to change the relevant legislation which has been enacted by Parliament.”

An HMRC spokesman said previously: “We have committed to giving people as long as they need to pay the loan charge as we completely understand that facing a large tax bill can be difficult and stressful. Our teams are trained to identify customers who are anxious, worried or need extra support and ensure they get the help they need.

”If people are worried about being able to pay the loan charge, they should get in touch with HMRC as soon as possible by calling the dedicated HMRC helpline on 03000 599110.

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