Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what arrangements HM Revenue and Customs been put in place for people subject to the Loan Charge who are experiencing financial hardship as a result of the coronavirus outbreak.

The Government and Her Majesty’s Revenue and Customs (HMRC) are acutely aware of the current economic challenges facing taxpayers as a result of the COVID-19 outbreak.

HMRC have a strong, established approach to supporting those who are unable to pay the tax they owe in full, through payment arrangements for those who reach a settlement agreement with HMRC, and Time to Pay (TTP) arrangements which are available for those paying the Loan Charge. These are tailored to each individual’s financial circumstances.

Anyone worried about their ability to pay tax owed, as a result of a change in their financial circumstances, should get in touch with HMRC as soon as possible. A TTP arrangement is designed to be flexible and is not a fixed contract. It can be amended over time in order to enable HMRC to lengthen the arrangement if expenses increase or income decreases.

HMRC are also able to refer taxpayers to an external body to provide independent advice on options available to people who are unable to pay or are in difficulty with their debts.