A few cross-party MPs have opened up about reservations on the Loan Charge 2019. They are interested in learning what the HMRC is communicating to the affected customers when the tax review is concluded.
The Loan Charge All-Party Parliamentary Group stated that they are looking for snippets from the affected parties on what the taxman has informed them regarding the “situation,” following Sir Amyas Morse reports.
This appeal came out on Friday. Previously, the MPs raised concerns that the Revenue is making people take bank loans so that they can pay the sums incurred by the tax reform.
A while back in February, the HMRC cautiously stated that it was “merely possible” that the charge-affected contractors would be asked for taking loans from banks, provided that ‘affordable’ repayments could be set up.
Some taxpayers took the discussion with the department on the Twitter. It mentioned that embroiling in debts for paying the loan charge has become a routine question – one that is even inquired from pensioners.
One of the questions asked by the HMRC on the form of standard Contractors Loans Settlement was the following: “Can you confirm you have considered a bank loan to cover the settlement offer?” It is then followed by another question: “If not, then why?”
This “if not, why not” question is again repeated for taxpayers in three more boxes to extract information regarding savings, asset realisation, and other arrangements. The purpose of this information is to fulfil the payment demands of the HMRC.
The APPG is of the view on the taxman that “[It’s] ethically dubious and appears to constitute giving financial advice which they’re not regulated to give.” The MPs have been critical of the taxman to motivate taxpayers in re-mortgaging their homes, in order to pay charge-related bills.
Last week, the group explained that they are now putting pressure on three candidates – who are competing to become the next chair of the Commons Treasury Select Committee – to reveal their opinion on the highly-controversial tax reform.
They hope that the next chair goes on to create a committee inquire in the Loan Charge 2019 and is able to thoroughly scrutinise HMRC and HM Treasury, particularly the manner in which they misled the parliament.
Andrea Jenkins MP has inquired the chancellor Sajid Javid on what decisions he undertook for ensuring the Loan Charge Review’s independence.