Critics say the loan charge is retrospective and has left many facing financial ruin, as they have received unexpected tax demands of up to tens of thousands of pounds dating back to the late 1990s which must be paid by April, while MPs – over 200 of whom have supported the suspension of the policy until it is reviewed – claim it has been linked to a number of suicides.

Save lives by suspending loan charge, MPs say

Those affected, from professions as varied as locum doctors to IT contractors, were following tax rules as they stood at the time and in many cases, even acting on official advice from qualified accountants.

Boris Johnson is being urged to act over the loan charge policy. Picture: Dominic Lipinski/PA Wire

HMRC’s ‘aggressive and unreasonable’ tactics to collect loan charge

Mr Johnson has already told a hustings event that an independent review is needed and the case for following through on that statement has now been added to thanks to a powerful intervention from Conservative grandee Iain Duncan Smith. The former Tory party leader has sent a public letter to Mr Johnson outlining how the retrospective charges have caused numerous businesses to close and pushed some people into bankruptcy. He also highlighted the disturbing case of one of his constituents who “expressed some highly concerning intentions to prematurely end his life because of HMRC’s vicious pursuit of him”. Mr Johnson cannot plead ignorance on the impact of this policy and must not delay in taking immediate action.

Boris Johnson must act over loan charge scandal pushing thousands to despair - The Yorkshire Post says