Loan charge reviewer Ray McCann calls for evidence

A call for evidence tied to Labour’s loan charge review is now open, allowing affected contractors to have their say.

More than 30 questions are asked of individual taxpayers, with those “who remain subject” to the backdated HMRC policy given priority.

Answers (including those by advisers who are asked seven questions) should be sent to a dedicated email address.

‘Evidence of the impact of the loan charge’

The deadline to send responses or comments, whether as an individual or adviser, is Friday May 30th 2025.

HM Treasury says: “Those who wish to provide evidence of the impact of the Loan Charge or other representations, including through the call for evidence, should [submit as soon as practical].”

IT contractors are explicitly named in the review as those it expects to hear from, even where they have now exited a caught scheme.

For example, Q1:2:1 states, “briefly describe your employment situation whilst you were involved” in an affected arrangement.

‘Review particularly wants promoters’ advice and information’

The review says it is “particularly interested” in receiving copies of the “advice/information” that promoters provided to contractors.

“What the review needs most is documentary evidence,” states the review, calling for promoters’ marketing material, letters, and emails.

Such evidence will “greatly help…[the review] understand why so many [contractors] have become involved in these schemes.”

‘Responsibility scheme promoters have for bringing misery’

The sought documentary evidence could also speak to the “responsibility the promoters have for bringing misery to so many.”

The review adds that promoter paperwork might help to evidence “difficulties you have had in bringing your involvement to a close.”

Before the call to evidence opened (on March 28th), the review of the loan charge was criticised, partly for not calling for evidence.

‘Loan charge review terms of reference not narrow, but specific’

In a ContractorUK exclusive, Greg Smith MP also criticised the choice of Ray McCann to chair the review, as he spent 31 years at HMRC.

The Tory MP also slammed the review’s narrow Terms Of Reference, or ‘TOR.’

Broadly, they are three-fold -- to probe HMRC’s terms for settling; to boost settlement, and to create new terms not onerous to HMRC.

But rather than being ‘narrow,’ the reference terms are “specific”, Mr McCann, an ex-CIOT president said yesterday to ContractorUK.

‘Opportunity for loan charge contractors to help’

Shown the concerns of Mr Smith, who co-chairs the Loan Charge Taxpayer Fairness APPG, McCann was resolute, insisting last night:

“The TOR [are] focussed. [And my] call for evidence is an opportunity to provide the review with evidence that will help [us] in [our] work.”

Yesterday, ContractorUK pointed out to the APPG’s Mr Smith that the evidence-call implies scrutiny of not just promoters but of HMRC too.

In fact, McCann is asking contractors to share their “experience of the HMRC enquiry process or in negotiating a settlement with HMRC.” (p3.)

(N.B. Promoter paperwork emailed anonymously is invited, but other anonymous statements will be accepted at the review’s discretion).

‘Restricted review that avoids looking at the loan charge itself’

Yet Mr Smith of the Conservatives still has reservations, warning of a “very restricted review that…avoids looking at the loan charge itself”.

“We’re pleased that the call for evidence for the McCann review of loan charge settlement terms [is finally now live],” the MP began yesterday to ContractorUK.

"We would encourage everyone affected by the loan charge scandal to send in their evidence, including evidence of the mis-selling by professionals and the conduct and behaviour of HMRC.

“[However] it is impossible to get any sense of the [loan charge as an] issue, without looking at it in the round.”

‘McCann to hopefully decide who’s to blame for loan charge mess’

Smith added that he hoped that the reviewer would “ignore the unreasonable restrictions” placed upon him by James Murray MP.

Despite the brief imposed by the Treasury minister, McCann will hopefully “decide who is to blame for the whole mess.”

“Anything [less] will just be tinkering with existing unfair settlements,” Mr Smith continued to ContractorUK.

“The APPG continues to believe that only a proper inquiry, that looks at the whole scandal, will…get to the truth and lead to a just outcome." 

‘HMRC are already off the hook’

The Loan Charge Action Group told ContractorUK that it broadly agrees.

LCAG’s Steve Packham says it is “disappointing” that “HMRC are off the hook for their profound failures,” regardless of the evidence that the review receives.

“The cynical way HMRC has tried to rewrite history to blame workers and ignore all the professional bodies who told workers to use these arrangements [is wrongly out of scope],” Mr Packham says.

‘Industrial mis-selling of tax schemes’

“We are pleased, however, that Ray McCann is seeking evidence regarding the role of promoters, accountants…[and] tax advisers.  

“What is important now is for all those affected  to submit evidence of the industrial mis-selling of schemes by all these parties.”

A lobby group which supported the 10 bereaved families who lost loved ones to the loan charge, LCAG says McCann has so far listened.

‘McCann’s final report won’t include contractors’ personal data’

For example, Packham wrote to the former HMRC veteran to say his evidence-call must make clear that no submitted “case [details] nor supporting information” could be shared with HMRC and HMT.

Since Packham’s letter (dated Feb 24th), McCann has said his final report to officials “will not include the personal data of individuals.”

With such an assurance now in place, Packham sounds like he’s hoping contractors throw the kitchen sink at the review, evidentially.

He says: “The more evidence that the review gets showing the reality of the loan charge scandal, it will be hard for the review to conclude any[thing] other than…HMRC has been cynically and unfairly blaming the wrong people -- and that the draconian loan charge itself was never acceptable.”

‘McCann aims to build a comprehensive picture, including of promoters’

Last night, WTT Group’s Graham Webber urged contractors to contribute to a piece of work that he said appeared to bear scrutiny.

“The call for evidence on the loan charge review is something that we have discussed with the reviewer, prior to issue, and we think that he has got this about right,” Mr Webber told ContractorUK.

“[McCann] is wishing to build up a comprehensive picture of not just how individuals engaged with scheme promoters, but also ‘why.’

“It has been the case that HMRC in their approach to the situation has always resisted the ‘why.’ [And so far] HMRC has refused to acknowledge that the ‘why’ is important and should attract some form of mitigation of liability.”

‘Confidential’

In the 19-page evidence-call (questions begin from page 9), contractors and other would-be contributors are told:

“Information supplied to the review will be treated as confidential.

“Submissions to the review through this call for evidence will be accessible only to the review team and IT administrators; and will not be shared more widely within HM Treasury unless necessary to ensure legal obligations with regards to information and data management are met.

“Such information sharing will be strictly limited to these circumstances and the information will only be shared with individuals who need it for this purpose. Your personal data will not be shared with HMRC.”

‘Questions are optional’

Responses to McCann’s call for loan charge evidence should be sent to contact@LCReview2025.org.uk no later than midday on May 30th.

All questions for contractors, organisations and advisers are “optional,” meaning some can be left blank, yet all respondents are asked to use a form provided to group their answers before emailing.

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Written by Simon Moore

Simon Moore is one of the UK’s most consistently published freelance journalists on freelancing, self-employment and contractor issues, such as IR35, the Loan Charge and late payment. Trained in News & Features writing by NCTJ-approved journalism tutors, Simon worked in the newsrooms of local, consumer and national press titles, before setting up his own editorial services company, Moore News Ltd.
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