2019 Loan Charge Debate

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Department: HM Treasury
Tuesday 20th November 2018

(5 years, 5 months ago)

Westminster Hall
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John Hayes Portrait Mr John Hayes (South Holland and The Deepings) (Con)
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The hon. Member for Poplar and Limehouse (Jim Fitzpatrick) made it clear that the genesis of the matter was the change to IR35 in 2000, which led to many freelance, contracted and itinerant workers ordering their financial affairs, notably for the purpose of paying tax, in a way that they believed and were told was completely proper and in line with the new regulatory environment. Subsequently, umbrella schemes developed as some of those people’s tax and financial affairs led them to the point where they became liable for employer’s national insurance contributions. Those umbrella schemes have become mainstream in the subsequent 18 years.

The people concerned were largely acting in good faith, whether or not the people who were advising and promoting the schemes were. The architects and advocates of the schemes are the people who the Treasury should be pursuing with vigour and determination.

Fiona Bruce Portrait Fiona Bruce (Congleton) (Con)
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Will my right hon. Friend give way?

Tommy Sheppard Portrait Tommy Sheppard
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Will the right hon. Gentleman give way?

John Hayes Portrait Mr Hayes
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I happily give way to my hon. Friend first.

Fiona Bruce Portrait Fiona Bruce
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Is my right hon. Friend aware that many of the organisations and advisers that encouraged our constituents, who are now suffering so much grief, to go into the schemes are the self-same ones putting themselves forward to give our constituents advice to address the challenges from HMRC? Does that not add insult to injury?

John Hayes Portrait Mr Hayes
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That should be a further part of the invitation that I made via my hon. Friend the Member for Wycombe (Mr Baker), whom I congratulate on securing the debate, to the Minister. We look forward to the Minister confirming that when he responds.