Critics say the loan charge is retrospective and has left many facing financial ruin as they have received unexpected tax demands of up to tens of thousands of pounds dating back to the late 1990s.
It is worth reiterating those who face these often-unaffordable new bills – from locum doctors, to IT contractors and oil and gas workers to name just a few of the affected professions – were following the rules as they stood at the time and many were acting on official advice from accountants on the handling of their financial affairs.
Today’s Yorkshire Post carries the first-hand accounts of desperate individuals who are in the firing line, including one local businessman who has warned the charge could result in the future of his company, which employs 400 people, being put at risk.
Given the situation, it is no surprise that 175 MPs have now written to the Government – many of them from the Conservative Party itself – urging them to suspend the policy for six months so a review can be undertaken to properly assess its impact and buy some time for the thousands of people and their families who are being affected.
The new chief financial secretary to the Treasury, Jesse Norman, should accede to their demands as a matter of urgency.