I had suicidal thoughts and sleepless nights due to the loan charge, says businessman

I continue to uncover evidence of the harm caused by the loan charge. I've been contacted by a man who told me he has been plagued by suicidal thoughts and doesn't expect to leave enough cash to pay for his funeral. The man, who turns 70 this year, said he was introduced to a DR (or disguised remuneration) scheme by a contracting company. The scheme providers "provided all the slick advice and said they were tax compliant”.

He said: "I was not much better off if I had run and contracted through a limited company. When I look back on it I feel we were all scammed.”

He said HMRC are now demanding £100,000, adding: "I have never claimed any benefit in my whole life.”

The man said he first experienced suicidal thoughts and sleepless nights in 2020, which he states was directly linked to stress caused by the loan charge. He added: "If I die in the next couple of years, it won’t be suicide, but it will be stress, or an associated illness brought on by this debacle."

It's clear the loan charge is causing serious distress to law-abiding people who trusted their advisers, more than three years after Lord Morse delivered his review of this controversial policy to the Government. Dave Doogan MP, the shadow SNP spokesperson for Defence, asked the chancellor to conduct a review of the potential effect of the loan charge on instances of suicides in the UK. In reply, Victoria Atkins, the Financial Secretary to the Treasury, said the loan charge review, led by Lord Morse, had assessed the policy’s impact. The Government accepted all but one of the review’s 20 recommendations and changes resulting from the review have reduced the Exchequer yield by an estimated £620m, Ms Atkins said.

Her reply added: “Any loss of life is a tragedy, and HMRC takes issues relating to loss of life or serious injury extremely seriously. HMRC has made 10 referrals to the Independent Office for Police Conduct (IOPC) in relation to individuals who have sadly taken their lives and have used DR schemes. In the eight concluded cases, the investigations found no evidence of misconduct by any HMRC officer.” Ms Atkins said people affected by the loan charge are supported by teams of specialist trained advisers who can signpost taxpayers to specialist voluntary organisations. She added: “To further strengthen the support offered to taxpayers, HMRC and Samaritans are currently working together to deliver an 18-month project.”

The Samaritans carry out noble work that saves lives. But the fact their services are required suggests the MPs’ concerns about the loan charge are well-founded.

Greg Wright is the deputy business editor of The Yorkshire Post