Loan Charge update

07 - 09 - 2021

Labour Party Ministers, “Late to the Party”

Steve Packham, founding member of the Loan Charge Action Group acknowledges that although “late to the party”, action being taken by Sir Keir Starmer and the Labour Shadow Treasury to meet and discuss the “true injustice” of the Loan Charge and the heavy-handed HMRC approach is most welcome.

The Loan Charge was introduced in 2017 by the government and was designed to tackle some tax avoidance schemes. The schemes were created so some individuals could receive income in the form of loans, which were not repaid, therefore avoiding paying tax and national insurance contributions on that income.


HMRC are to be challenged on:

That tax avoidance schemes were mis-sold to many workers and the promoters of such scheme’s should be liable for the taxes, not the contractors.


It is challenged that the retrospective nature of the Loan Charge runs counter to the fundamental UK taxpayer’s protections.


In many cases HMRC were heavy-handed and lacking in empathy, failing to take into account each taxpayer’s circumstances.


The Labour party leader has written to interested parties and confirmed

“We will continue to push for HMRC to resolve cases in a fair and effective manner”


We wait for the government and HMRC’s responses to the Labour Party, now it’s with their front bench.






Foremans LLP Umberlla
Foremans LLP