Are you aware about the ‘loan charge’? In the recent turn of events, loan charge — an issue that has been plaguing honest and hardworking families — has gained wider recognition. A host in the local LBC show shed some spotlight on the matter on their show and they were astonished by got a huge influx of public messages; most of them were gloomy, representing the sad state of affairs for many honest taxpayers.
The problem is that several citizens have to face the onslaught of unfair and hefty tax bills. The reason behind the predicament was the poor decision making of Treasury authorities who went back on their taxation policy. Earlier, contractors and freelancers were permitted to get their due payments through employee benefit trusts—this payment was basically “loans” that did not require to be paid. As a result, the self-employed individuals were able to get some tax relief.
In a recent turn of events, the process has been declared as unlawful and branded as ‘tax evasion’. To add salt to their injuries, authorities have announced their intention to seek payments for the past 20 years. Interestingly, laws only require individuals to keep track of their financial information of the last 7 years.
In the local LBC show, the host had some words with the financial secretary, Mel Stride, on the matter. While he maintained his composure and was amicable, Mr. Stride comments on the issue were not well-accepted by the analysts and the victims of Treasury’s backpedaling.
Some analysts opine that the government could not predict the damage of their actions and therefore, were unable to gauge the sentiments and damages of their citizens. Due to the guarantee of HMRC, some people are questioning their financial advisors who lead them into this dark hole. Though, it is not realistic to believe that the government would look over the financial consulting aspect. Instead, financial professionals are adamant that the government is hell-bent on receiving money.
Accounts of Victims
Unfortunately, it is the middle class which has been brutally hit by the abandonment of government. The host was reached out by a local GP, Sarah from Maidstone. Ms. Sarah claimed that she was asked to pay £120,000; a figure which has left her no way other than the sale of her home. From Windsor, Mark was forced to give £180,000; his family is now compromising by residing in a council flat with only two bedrooms. Similarly, as more and more stories poured in, it was evident that the lives of a lot of people were never going be to be the same.
The mistreatment of citizens on such a large scale is absurd for any state. Considering, since we have a Conservative government, these actions can be only labelled as contradictory and capricious, since these victims are supposed to be among those who voted for Tory. Now, there is nothing wrong for authorities to identify loopholes in taxation policies and outlaw it.
However, their execution and attitude matters! By taking a fierce reversal on a once-legal process; particularly on the law-abiding segment which was dutiful in their tax payments; and ignoring the net outcome of one’s actions on families as people run frantically to rescue their families from the recently formed abyss; the government has made a huge misstep.