Sir Amyas Morse, the former Head of the National Audit Office, is expected to appear before the Loan Party APPG. Several MPs are reviewing Loan Charge 2019 as there is an increasing sentiment that Sir Amyas’ recommendations are not going to have much impact on the 40,000 contactors.
The recent meeting of APPG also discussed questioning Jesse Norman, the Treasury Minister. However, according to the Tories’ Mike Penning, it is unlikely that the advisers of the minister will let him appear before the MP group.
There are also talks that MPs were always critical of the terms in the Morse Review. This is the reason they limited Sir Amyas from reprimanding the HMRC. He was only expected to evaluate the Loan Charge and assess whether it was a suitable response to tax avoidance.
Due to his review, the government adopted “a sort of halfway house.” There is barely any reprimand from the HMRC. Only a few customers got concessions, while tens of thousands of individuals were unable to get any resolution.
The APPG calculated that even if the concessions by Sir Amyas are taken into account, 40,000 taxpayers and their families are still facing a lot of difficulties due to HMRC’s retrospective bills. The MPs point out that the tax demands are yet to be proven.
A taxpayer and IT contractor, Gus, summed up the situation that he dreamt of a possibility where he did not have to feel like a criminal despite not breaking any violation. Similarly, Gareth Paris, another affected taxpayers opined that he would like a lower tax rate percentage with loan charge.
Katherine, a taxpayer, was forced to sell home to pay for the £400,000 demand by HMRC. She was distressed and does not believe that anything can improve her situation. However, she expressed worry for others due to the Morse Review. The Review recommends “retrospectivity” in some cases, which can be an issue for many.
During the face-to-face of Sir Amyas with the MPs, each of the five HMRC customers agreed with the assertion of Mr. Penning; the Morse Review was not helpful to any of the taxpayer.
Perhaps, the closest exception was John, a taxpayer, where the government’s response to the Morse Review has saved him from the Loan Charge. Still, even he was critical of the HMRC’s position for the pre-2010 years; he called their position as unclear.