Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Exchequer Secretary to the Treasury's oral contribution of 1 July 2025, Official Report, column 137, for what reason her Department did not inform (a) Rt hon. and hon. Members and (b) those (i) contractors, (ii) freelance workers and (iii) small company directors who were (A) mis-sold disguised remuneration schemes and (B) subject to the Loan Charge of HMRC's Loan Charge settlement with multinational companies.

The Government commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government will respond by Autumn Budget 2025.

During Oral Questions on 1 July 2025, Greg Smith MP referred to comments made by an external stakeholder that were shared under the Freedom of Information Act 2000. HMRC Officials do not recognise the allegation that HMRC agreed deals with large employers allowing them to settle disguised remuneration liabilities for less than was legally due.

HMRC applies the law fairly and consistently in accordance with its published Litigation and Settlement Strategy (LSS). This ensures every taxpayer, no matter who they are, pays the tax due under the law. Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.

HMRC’s Litigation and Settlement strategy can be found on gov.uk: www.gov.uk/government/publications/litigation-and-settlement-strategy-lss