Hammond written to over loan charge group allegation

Philip Hammond has been invited by the chair of an influential MP-panel to explain himself after alleging a loan charge group is staffed by disguised remuneration scheme promoters.

The chancellor is asked in a letter by Nicky Morgan MP to consider whether his comments to her Treasury Select Committee require an amendment or clarification, seemingly in light of no evidence to support his allegation.

In April, Mr Hammond told the committee that he understood that the Loan Charge Action Group “includes people” who helped plug the schemes. He added that LCAG even admits it.

'Independent action group'

But in her letter to the chancellor, Ms Morgan points out that LCAG describes itself only as “an independent action group…funded by individual subscriptions from members of LCAG.”

She also refers Mr Hammond to a letter from Sir Ed Davey, chair of the Loan Charge APPG, of which LCAG is the secretariat, in which he states that LCAG “does not involve anyone who has been involved in the promotion of avoidance schemes.”

Approached yesterday about Mr Hammond’s allegation against it, LCAG said it was working on a response for ContractorUK readers, many of whom are affected by the loan charge, which took effect in April.

'In due course'

In in her letter, Ms Morgan informs the chancellor that his response – including whether he wishes to make “any amendment or additional clarification for the record” – will be published on the Treasury Select Committee’s website “in due course.”

Tweeting her letter, LCAG said: “The chancellor is [being] asked…to reconsider his misleading statements to the Treasury Select Committee about LCAG and the Loan Charge APPG.”

The lobbyist-turned-support group added: “The government’s inability to be honest around the loan charge is why a Loan Charge Review is needed.”

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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