The Loan Charge & Taxpayer Fairness All-Party Parliamentary Group (APPG) has written a letter to Chancellor Jeremy Hunt expressing their "serious concern" about the far-reaching consequences of the controversial Loan Charge policy. 
The APPG highlights that this policy has sparked a mental health crisis, with ten reported suicides thus far. Furthermore, recently issued "discovery assessments" by HMRC have left certain taxpayers in great distress, burdened with significant and life-altering backdated tax bills that are clearly unaffordable in most cases. The Yorkshire Post reported on the APPG's criticism of HMRC's conduct, expressing deep concern over the distress conveyed by constituents, some of whom have shared suicidal thoughts or expressed actual suicidal intent. The letter also raises apprehensions about the punitive daily interest charges and penalties, which may force some individuals to sell their homes to settle the tax bills. As one of the largest All-Party Parliamentary Groups with over 250 members, the APPG urges the government to change its approach and seek a resolution to this pressing issue. 
Understanding the Loan Charge: 
The Loan Charge serves as a mechanism to recover taxes from individuals involved in disguised remuneration schemes. Many contractors unknowingly operated within these tax avoidance schemes, which remunerated them through non-repayable loans exempt from income tax and national insurance contributions. To reclaim these taxes, HMRC treats the total value of all loans as income in a single year, thereby imposing substantial tax bills on contractors, many of which are clearly unaffordable, according to the APPG. 
Since the policy's introduction, HMRC's focus on recovering taxes from contractors rather than the operators of tax avoidance schemes has garnered frustration and criticism. As highlighted in the APPG's letter, individuals were advised to engage in these schemes by chartered accountants and accredited tax advisers. 
With ten suicides linked to the Loan Charge, the APPG's latest letter suggests that this number may increase unless the government takes prompt action. 
APPG Requests Meeting with Financial Secretary: 
Responding to the report in the Yorkshire Post, a Government spokesperson stated, "We never forget that there is a human story behind every unpaid tax bill. HMRC takes the well-being of all taxpayers seriously and acknowledges that substantial tax liabilities can exert significant pressures on certain individuals." 
However, the APPG's letter expresses that HMRC's behavior significantly differs from the rhetoric provided to MPs and Select Committees. The APPG accuses the tax office of engaging in grossly unfair practices, including continued contact with a taxpayer who attempted suicide due to the Loan Charge. 
As of now, the APPG has not received a response from the Chancellor. However, it did receive a letter from Victoria Atkins, the Financial Secretary to the Treasury, in response to the open letter addressed to the Prime Minister and Chancellor earlier this year. 
The APPG considers this response "extremely disappointing," noting that it failed to adequately address the serious points raised and the plea for the Treasury to actively engage in discussions to find a resolution. 
Consequently, the group has requested a meeting with Atkins to discuss how to resolve the situation, as the current approach has resulted in devastating outcomes, as highlighted in their previous correspondence. 
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