The taxman is stepping up a relentless pursuit of tens of thousands of Brits caught up in the devastating loan charge scandal—threatening them with debt collectors despite links to multiple suicides.
HM Revenue & Customs () is targeting around 60,000 individuals, including nurses, teachers, and other professionals, who were unwittingly drawn into controversial “disguised remuneration” schemes in the 2000s and 2010s.
These schemes—often promoted by accountants and tax advisers—paid workers via loans rather than salaries, meaning income tax and National Insurance were not deducted.
Many contractors believed they were operating within the law, having paid their taxes through fees to umbrella companies.
But in 2017, took a hardline stance, demanding workers’ pay tax on all loans they had received in one lump sum—leaving many facing six-figure tax bills at punitive 45 percent rates. Some individuals who had earned as little as £10,000 per year through the scheme suddenly found themselves owing £100,000 in tax, pushing them into financial ruin.
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Tax experts warn that HMRC’s actions could devastate thousands of families (Image: Getty)
Now, with the clock ticking towards an April 5 deadline, is intensifying its collection efforts. Those who failed to submit a tax return for the 2018-2019 tax year have been sent aggressive “determination” letters—’s own estimate of what they owe.
These estimates cannot be appealed, and recipients face the looming threat of debt collectors unless they file a return proving their true tax position.
Tax experts warn that ’s actions could devastate thousands of families. Accountancy firm RSM has accused the tax office of failing to check whether individuals have already made efforts to settle their tax affairs before issuing these demands.
The scandal has already been linked to at least 10 suicides, and MPs have compared it to the infamous Horizon IT debacle. Despite these tragic consequences, is refusing to slow down, even as Chancellor Rachel Reeves launches an inquiry into the fiasco.
Tony Connelly, a tax consultant representing affected workers, slammed the tax office’s ruthless approach. He told the Telegraph: has been threatening to do this for years, but now, with Treasury finances stretched, they are ramping up efforts. There’s a six-year limit to recover taxes, so they are pushing hard before time runs out.”
Critics argue that most of those affected had no idea they were doing anything wrong, having followed professional tax advice at the time. Connelly added: “Most people were told no tax was due. There’s a strong case that they did nothing beyond failing to take reasonable care.”