Loan Charge

Debate between Drew Hendry and Greg Smith

Thursday 18th January 2024 Commons Chamber

[Greg Smith (Buckingham) (Con)]

I will do my best, Madam Deputy Speaker. I congratulate the right hon. Member for East Antrim (Sammy Wilson) not only on securing the debate but on the incredibly powerful and eloquent way in which he opened it—I entirely endorse his speech.

Indeed, alongside the right hon. Gentleman and the noble Baroness Kramer, I serve as co-chair of the all-party parliamentary group on the loan charge and taxpayer fairness. It is through that lens, and given the many constituents of mine who are victims of the loan charge, that I have become profoundly troubled by what I can only describe as one of the most significant crises faced by British taxpayers, certainly in my living memory.

The loan charge has haunted, and is still haunting, thousands of our constituents throughout the country, bringing with it a train of despair and destruction that should weigh heavily on HMRC and all of us in this House. To date, an estimated 60,000 people have been affected by the loan charge. Tragically, as has already been said, 10 of those people have come to the tragic conclusion of ending their own lives. I invite the House to reflect on a retrospective HMRC tax policy that has led to 10 people—I pray no more—ending their lives.

Those are not numbers on a page; they are human tragedies. Each one is a poignant reminder of the injustices felt by individuals who are still grappling with the devastating consequences of the amount of money asked of them—in some cases, more than they earned in the first place—as the right hon. Gentleman mentioned. The profound impact of the loan charge extends its reach far beyond mere statistics and financial repercussions. It is a devastating narrative that encompasses contractors, freelancers and agency workers from all walks of life. Those professionals, seeking compliance under IR35 legislation, took and followed professional guidance in good faith.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

On the point about taking advice and being led by agencies and promoters, does the hon. Member agree that it is simply scandalous that none of those agencies has been pursued by HMRC for their part in this, and that that further heightens the injustice felt by those who are being pursued?

[Greg Smith]

That is a point on which we have consensus. It is outrageous that promoters have not been pursued. The all-party parliamentary group has considered and taken evidence on that, and I will certainly continue to push that point in this debate and for the weeks, months and years ahead, in trying to get justice for all the victims of the loan charge and holding to account those who gave that advice, who, I suggest, knew what they were doing.