'Action should be taken against advisers linked to loan charge'
A man affected by loan charge told The Yorkshire Post he had been re-hired as a contractor by his former company in 2016.
He recalled: “I did a quick google and found an umbrella company at the top of the results so I engaged them. They seemed professional and HMRC-approved, so what’s not to like?
Advertisement
Hide AdAdvertisement
Hide Ad“I happily documented everything I had ever done for the new owners, I submitted timesheets to the umbrella company and I received money in my bank account.


“Then, in about 2020 or so, I got a demand from HMRC for a tax return for 2019. When I did eventually manage to get through to a real person on the phone, it was never anyone who could say why HMRC wanted this.
“By now, I had some inkling that this was about the Loan Charge. It seems HMRC were expecting me to put 2016 income in my 2019 return.
“As the tax return was accepted, I felt there was nothing left to worry about, and then, there was a notice from HMRC saying they have a right to, and are, investigating my affairs for 2019.
Advertisement
Hide AdAdvertisement
Hide Ad“Every day I watch the postman delivering mail to me with a sinking dread feeling. My main stress is the length of time this has been going on. If ever something needed a Statute of Limitations, it is this. HMRC seems willing and able to work as slowly and for as long as they like, without a care for any emotional stress and cost to those involved.”
Another man affected by the loan charge said: “I had contact in 2019 with HMRC when the initial review was being done, and was advised that I should wait until the outcome of the review and legislation has passed before I do anything further. I was advised I do not need to continue paying until they come back to me.
“Having not heard from HMRC for five years, thinking the stress and worries are behind me, a brown envelope in the post this summer chasing me for payment. To add insult to injury, they’ve now added five years worth of interest to the amount I owe.
“I’ve now been backed into a corner by HMRC and find myself having to pay a monthly figure for the next two to three years.
Advertisement
Hide AdAdvertisement
Hide AdI’d love for my so called “debt” to be wiped, or for them to at least go after the umbrella company who I was using at the time I was a contractor. Action should be taken against the companies that misled individuals into this.”
Comment Guidelines
National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.