'I stepped in front of a minicab': The devastating impact of crippling tax demands from HMRC

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Tens of thousands of people across the country are facing crippling tax demands from HMRC for tax their employers did not pay. Sky News' Gurpreet Narwan speaks to those who have been financially and psychologically affected by the Loan Charge.

Tens of thousands of people are facing crippling tax demands from

seven years ago but 'there's been a constant drip of letters ever since'. It informed him that he had been hit with something called the Loan Charge. The policy came into force in 2017 through a piece of legislation that targeted people - often agency workers - who were paid their salaries through umbrella companies. Some of these companies were actually operating tax avoidance schemes that would pay individuals a loan instead of a salary.

office or the number on the letter,' he said. Dylan's mother found him shortly afterwards. Her son had overdosed. He described his experience as one of 'absolute exhaustion and fear'. ' a cloud hanging over you. If you have a good experience, it still creeps in that this is hanging over your head and it kind of sours everything. And that's kind of how a lot of us live. And I'm experiencing it and it is horrible,' he said.

failed to take action against these schemes, which resulted in widespread underpayment of income tax and national insurance. The courts have since ruled that the employers or agencies should have been paying tax to the exchequer. However, the Loan Charge legislation overrode that - allowing has warned recruitment agencies that they face penalties if they refer people to non-compliant umbrella companies but would not respond to questions about how many recruitment agencies it has investigated. MPs and tax lawyers are calling for the agency to rescind the policy, arguing that it is a retrospective charge that overrides taxpayers' statutory protections by dismissing time limits on

 

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