Contractors asked to give evidence on Loan Charge 2019

Contractors caught by April’s disguised remuneration rules are being called by the Loan Charge All Party Parliamentary Group to come forward to give evidence of their experience.

Alongside professionals and advisers, who gave oral evidence yesterday, the APPG says it wants to hear “from those facing the Loan Charge” by no later than Monday February 25th.

The tight timeline is part dictated by the Treasury review of the charge – some of the evidence for which will come from the APPG’s probe -- being fixed to report by March 30th.

The APPG website shows its probe will be wide-ranging despite the short time frame, taking into account HMRC’s claims, powers, the legal status at the time, promoters and other areas.

But the aspect most relevant to contractors being sought to give evidence is the “reality of the situation” they are in now, two months before the charge is due to be applied.

“The level of liabilities and the impact the Loan Charge will have on individuals, their financial situations, their lives and families and career,” said the APPG, listing its interests.

“HMRC’s record when dealing with affected taxpayers, the timeframe in which people have been informed about their liabilities and in particular, the arrangements being proposed for repayment and whether they are realistic and affordable for those facing them.”

Contractors who wish to respond and contribute to the APPG’s probe should do so in writing, using MS Word or PDF format, and ensure their submission does not exceed 2,500 words.

It’s the same rules for any adviser who wishes to give evidence, and they -- like contractors-- are also advised by the APPG to:

  • State clearly who the submission is from, i.e. whether from yourself in a personal capacity or sent on behalf of someone else
  • Include a brief description of yourself/person affected
  • State clearly if you wish for your submission to be confidential and/or anonymous. (“If this is not indicated, the APPG reserves the right to reference the content of your submission in future reports and publications. Requests for anonymity will be respected, but information within will still be used in the final report and attributed without name.”)
  • Email your submission to before 00.000 on 25.02.19

Sir Edward Davey, chair of the loan charge APPG, and the MP who forced the government to review the loan charge, believes that no matter what evidence is uncovered, the April tax is still going to apply.

“[This] inquiry is an important and timely opportunity for proper scrutiny of the Loan Charge before it comes in,” he said, reiterating:

“With tens of thousands of people facing life-changing bills, it is vital that the Loan Charge is properly examined before it comes into effect on 5th April.”

Ruth Cadbury MP, the loan charge APPG’s vice-chair said: “Constituents from up and down the country have been contacting their MPs about the impact that the Loan Charge, as it is currently devised, will have on them and their families when it comes into effect in just two months’ time.

“There are many question marks about the way the Loan Charge has been implemented and the justification for doing so, as well as the obvious concern for the welfare of many people facing the Loan Charge and huge bills for past tax years that they were not expecting.”

Some of those questions will be put to HMRC and HM Treasury – due to give their evidence to the APPG at the final stage, after advisers and individuals have had a chance to put theirs.

The cross-party group’s conclusions and final report will be published in mid-March 2019, with specific recommendations for ministers, who will be “requested” to provide a formal response.

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