Asked by: Clive Jones (Liberal Democrat - Wokingham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many individuals with liabilities relating to Loan Charge schemes have a) been offered an opportunity to settle those liabilities , b) have accepted an invitation to settle those liabilities, and c) have settled those liabilities in full since the publication of the Independent Loan Charge Review 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the Hon. Member to the answer I gave on 27 April 2026 to UIN 128634.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the total cost of resolving all remaining Loan Charge cases broken down by (a) the 32,000 individual cases currently unsettled, (b) cases involving HMRC demand from before December 2021 and (c) all demands from after April 2019.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2024, the Government committed to a new independent review of the loan charge. The purpose of the review was to bring the matter to a close for people who have not settled and paid their Loan Charge liabilities.
The Government has accepted all but one of the Review’s recommendations, and in some areas has gone further. The Government has introduced legislation in the Finance Act to provide for a generous new settlement offer which it hopes maximises the opportunity for individuals to come forward and settle. I am committed to deliver the Government’s ambition to bring this matter to a close for as many customers as possible.
Whilst HMRC assesses the overall resources needed to carry out Loan Charge compliance activity, this is not based on detailed case-by-case forecasts. HMRC is required to collect tax due under the law. The progression and resolution of Loan Charge cases depend on a range of variable and often uncertain factors. These include the extent to which taxpayers choose to engage with HMRC to settle their enquiries.
In line with most tax policy changes, Tax Impact and Information Note (TIIN) setting out HMRC’s assessment of the impacts of the Loan Charge were published when the Loan Charge was announced in 2016. Further TIINs were published alongside subsequent changes to the Loan Charge.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to tackle tax avoidance and evasion through offshore financial arrangements.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The UK is a leader in international tax transparency and HMRC works closely with tax authorities around the world to tackle offshore avoidance and evasion. For example, in 2024/25 HMRC received data on over 10 million offshore financial accounts from over 100 jurisdictions and will start to receive information under the new Cryptoasset Reporting Framework in 2027. The Government is investing in an increase of around 400 compliance officers over the next five years to further tackle offshore non-compliance by wealthy people, bringing in around £500 million in additional compliance yield over the same period.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department's policy paper entitled Tax avoidance loan schemes and the loan charge, published on 26 November 2025, if she will publish a breakdown of the sources of the £3.2 billion figure.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government recognised that concerns continued to be raised about the loan charge and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.
The full breakdown of the £3.2bn figure referenced in the November 2025 policy paper, was published on 23 April 2020 and can be found on GOV.UK: Section 4 - Policy Costing - GOV.UK
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of extending joint and several liability for payroll taxes within umbrella company arrangements on recruitment agencies supplying temporary staff to public sector bodies, including the NHS.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Umbrella companies are a type of employment intermediary that engages workers on behalf of recruitment agencies and end client organisations. Although many umbrella companies operate diligently, others are used to facilitate non-compliance including tax avoidance and fraud.
From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client organisation. The rules apply regardless of the sector in which workers are engaged.
The new rules are intended to drive behavioural change in the temporary labour market, increasing the amount of assurance undertaken by organisations that use umbrella companies to force non-compliance umbrella companies out of the market. This change is forecast to protect around £2.7 billion across the scorecard period up to and including 2030-31.
It is right that organisations that choose to use umbrella companies to engage workers should take steps to make sure that they are compliant. HMRC has published extensive guidance to support organisations that use umbrella companies to undertake assurance checks.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what consideration she has given to establishing a government-recognised (a) compliance and (b) accreditation standard for umbrella companies to reduce payroll tax risk within labour supply chains supplying public sector bodies.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Umbrella companies are a type of employment intermediary that engages workers on behalf of recruitment agencies and end client organisations. Although many umbrella companies operate diligently, others are used to facilitate non-compliance including tax avoidance and fraud.
From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client organisation. The rules apply regardless of the sector in which workers are engaged.
The new rules are intended to drive behavioural change in the temporary labour market, increasing the amount of assurance undertaken by organisations that use umbrella companies to force non-compliance umbrella companies out of the market. This change is forecast to protect around £2.7 billion across the scorecard period up to and including 2030-31.
It is right that organisations that choose to use umbrella companies to engage workers should take steps to make sure that they are compliant. HMRC has published extensive guidance to support organisations that use umbrella companies to undertake assurance checks.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment HMRC has made of the risk of unpaid employer National Insurance contributions within labour supply chains providing temporary staffing to the NHS following the Ducas tax dispute; and whether she plans to introduce a statutory (a) accreditation and (b) licensing regime for umbrella companies operating in the labour market.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Umbrella companies are a type of employment intermediary that engages workers on behalf of recruitment agencies and end client organisations. Although many umbrella companies operate diligently, others are used to facilitate non-compliance including tax avoidance and fraud.
From 6 April 2026, recruitment agencies are responsible for ensuring that Pay As You Earn and National Insurance contributions obligations are met when they choose to use an umbrella company to engage a worker. Where these obligations are not met, HMRC will recover underpayments from the recruitment agency. If there is no recruitment agency involved in an arrangement with an umbrella company, this responsibility will fall to the end client organisation. The rules apply regardless of the sector in which workers are engaged.
The new rules are intended to drive behavioural change in the temporary labour market, increasing the amount of assurance undertaken by organisations that use umbrella companies to force non-compliance umbrella companies out of the market. This change is forecast to protect around £2.7 billion across the scorecard period up to and including 2030-31.
It is right that organisations that choose to use umbrella companies to engage workers should take steps to make sure that they are compliant. HMRC has published extensive guidance to support organisations that use umbrella companies to undertake assurance checks.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many individuals have settled their loan charge liability (a) in full or (b) through a Time to Pay arrangement since the publication of the Ray McCann review on 26 November 2025 until the most recent date for which data are available.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC have now written to all taxpayers that they have identified as being eligible for the settlement opportunity, to explain how they are affected by the outcome of the review. Taxpayers who register an interest in settling under the new opportunity now will also be prioritised for contact and receive a settlement offer sooner once the settlement scheme has been introduced.Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to FOI2025/189761 dated 2 January 2026, what assessment she has made of the value for money of HMRC's compliance and enforcement activities relating to the Loan Charge.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government recognised that concerns were raised about the Loan Charge under the previous government and that some felt strongly that it had not been handled appropriately.
The Government therefore commissioned a new independent review of the Loan Charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the Loan Charge.
The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HM Revenue and Customs (HMRC). In turn, this requires those individuals or employers to now come forward and engage with HMRC in good faith.
Whilst HMRC assesses the overall resources needed to carry out Loan Charge compliance activity, this is not based on detailed case-by-case forecasts. HMRC is required to collect tax due under the law. The progression and resolution of Loan Charge cases depend on a range of variable and often uncertain factors. These include the extent to which taxpayers choose to engage with HMRC to settle their enquiries.
In line with most tax policy changes, Tax Impact and Information Note (TIIN) setting out HMRC’s assessment of the impacts of the Loan Charge were published when the Loan Charge was announced in 2016. Further TIINs were published alongside subsequent changes to the Loan Charge.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to offer the same settlement terms that will be provided in the settlement resulting from the implementation of the McCann Review to those that have already settled with HMRC.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the Hon. Member to the answers I gave on 9 February 2026 to UIN 109841, 109843 and 109842 and the answer I gave on 27 February to UIN 114103.