Asked by: Harriet Cross (Conservative - Gordon and Buchan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure transparency in the conduct of the Loan Charge review.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has commissioned an independent review of the Loan Charge. Ray McCann, a highly respected figure in the tax world, is leading the review. His name was suggested by one of the Loan Charge campaigners.
To ensure transparency, the terms of reference make it clear that Mr McCann will be supported by a team of officials who have not previously worked on this policy area and will be based outside of HM Treasury and HMRC. Information provided by HMT and HMRC to the review team and factual comments provided on draft reports will be published after the review has concluded.
The Government does not think it is right for people affected by the Loan Charge to have to wait years to bring this matter to a close and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government will consult in 2025 on measures to tackle promoters of marketed tax avoidance and has already announced measures to tackle the significant tax avoidance and fraud in the umbrella company market.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she made an assessment of the potential merits of including the (a) role and (b) conduct of HMRC within the terms of reference of the independent review of the loan charge.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has 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 does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them. The Government has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will have discussions with Ray McCann on including the role of people who (a) recommended and (b) operated disguised remuneration schemes with the Loan Charge review.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has 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 does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them. The Government has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the adequacy of the Independent Review of the Loan Charge.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has 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 does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them. The Government has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025.
Alongside the review, the Government is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
Asked by: Vikki Slade (Liberal Democrat - Mid Dorset and North Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of people made bankrupt by the Loan Charge.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC will only ever consider initiating bankruptcy as a last resort, where they have been unable to work with the customer to agree a manageable payment plan. HMRC will also not force anyone to sell their main home or access their pension funds early to pay their Loan Charge or disguised remuneration debts.
Asked by: James Frith (Labour - Bury North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the Loan Charge review does not include the (a) role and (b) conduct of people who profited from recommending and operating disguised remuneration schemes in its scope.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government has 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 is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
The Government announced action at 2024 Autumn Budget to tackle tax avoidance by umbrella companies. Legislation, effective from April 2026, will be introduced to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. Where there is no agency in the supply chain, this responsibility will fall to the end client. This along with the measures on promoters will help prevent disguised remuneration in the future.
In relation to the prosecution of Loan Charge scheme promoters and operators, I refer the hon. Member for Bury North to the answer I gave on 16 October 2024 to Question UIN 7747.
Asked by: James Frith (Labour - Bury North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the role of umbrella companies in the use of disguised remuneration schemes.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government has 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 is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
The Government announced action at 2024 Autumn Budget to tackle tax avoidance by umbrella companies. Legislation, effective from April 2026, will be introduced to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. Where there is no agency in the supply chain, this responsibility will fall to the end client. This along with the measures on promoters will help prevent disguised remuneration in the future.
In relation to the prosecution of Loan Charge scheme promoters and operators, I refer the hon. Member for Bury North to the answer I gave on 16 October 2024 to Question UIN 7747.
Asked by: James Frith (Labour - Bury North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the role of recruitment companies in the use of disguised remuneration schemes.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government has 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 is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
The Government announced action at 2024 Autumn Budget to tackle tax avoidance by umbrella companies. Legislation, effective from April 2026, will be introduced to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. Where there is no agency in the supply chain, this responsibility will fall to the end client. This along with the measures on promoters will help prevent disguised remuneration in the future.
In relation to the prosecution of Loan Charge scheme promoters and operators, I refer the hon. Member for Bury North to the answer I gave on 16 October 2024 to Question UIN 7747.
Asked by: James Frith (Labour - Bury North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many promoters and operators of schemes now subject to the Loan Charge have been prosecuted for promoting and operating these schemes.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government has 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 is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
The Government announced action at 2024 Autumn Budget to tackle tax avoidance by umbrella companies. Legislation, effective from April 2026, will be introduced to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. Where there is no agency in the supply chain, this responsibility will fall to the end client. This along with the measures on promoters will help prevent disguised remuneration in the future.
In relation to the prosecution of Loan Charge scheme promoters and operators, I refer the hon. Member for Bury North to the answer I gave on 16 October 2024 to Question UIN 7747.
Asked by: James Frith (Labour - Bury North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the contribution of (a) accountants and (b) tax advisers to disguised remuneration schemes.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government has 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 is committed to tackling promoters of tax avoidance and will consult on measures to tackle promoters of marketed tax avoidance, including new powers focused on those who own or control promoter organisations and options to tackle legal professionals behind avoidance schemes.
The Government announced action at 2024 Autumn Budget to tackle tax avoidance by umbrella companies. Legislation, effective from April 2026, will be introduced to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay. Where there is no agency in the supply chain, this responsibility will fall to the end client. This along with the measures on promoters will help prevent disguised remuneration in the future.
In relation to the prosecution of Loan Charge scheme promoters and operators, I refer the hon. Member for Bury North to the answer I gave on 16 October 2024 to Question UIN 7747.