Loan Charge

Jim Cunningham Excerpts

Thursday 11th April 2019 Commons Chamber

[Richard Harrington (Watford) (Con)]

What can I say in two minutes, Madam Deputy Speaker? Well, I will do my best.

I am a person who is naturally a bit cynical when constituents come to see me and I try to see both sides of the story, but in this case I had more than 160 constituents in the group in Watford to do with the loan charge. I commend Her Majesty’s Revenue and Customs—rather like the hon. Member for High Peak (Ruth George), I sometimes still call it the Inland Revenue—for its efforts to deal with tax evasion, but it seems to me that in this case it is not tax evasion. These were schemes put forward by accountants and schemes where people took on employment and were told that that was the way they had to do it.

[Mr Jim Cunningham (Coventry South) (Lab)]

Does the hon. Gentleman agree that action should be taken against the employers who forced these people into these schemes and the financial advisers who sold them the schemes in the first place? I have had lots of constituents on at me about that. [Interruption.]

[Richard Harrington]

My right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning) says, “Spot on.” I too fully accept the validity of the hon. Gentleman’s intervention.

Clearly, these schemes were not correct. The way to deal with this is to say that if people went into this because they were reasonably advised to, or told to by their employers, then even if they are liable, HMRC should have the flexibility, on a humanitarian and a mitigation basis, to say, for example, that the money should be paid back over a lengthy period—monthly, quarterly or whatever. I am sure that HMRC does not wish to bankrupt people, ruining their lives and so on.

My right hon. Friend the Minister is himself a man experienced in business who is very aware of the ways of the world. I am sure that he knows the difference between criminal tax evaders and people like my constituents in Watford and other hon. Members’ constituents. Because of that difference, HMRC should have the flexibility to deal in a humanitarian way with these unfortunate people.