HMRC facing probe over bungled crackdown linked to ten suicides

Rachel Reeves orders inquiry into HMRC's Loan Charge scandal

The taxman is under scrutiny after a failed crackdown on 60,000 workers that has been associated with ten suicides. Chancellor Rachel Reeves has initiated an investigation into HMRC's Loan Charge scandal, following comparisons to the Post Office Horizon scandal earlier this year.

Controversial measure retroactively taxes workers

The Loan Charge, implemented in the UK in 2016, retroactively taxes individuals who received payment through "disguised remuneration" schemes. This practice involved part of their salary being paid as loans to evade income tax. Many individuals were taken aback by bills for arrangements dating back to 1999, with some facing tax bills of up to 45%.

New review announced post-Budget

The announcement of an independent review of the Loan Charge was discreetly made in the post-Budget document. The review aims to bring closure to those affected while ensuring fairness for all taxpayers. The Loan Charge Action Group welcomed the news but emphasized that justice for victims is still pending.

Additional support for victims

Chancellor Rachel Reeves also unveiled a package exceeding £13 billion for victims of the Post Office and infected blood scandals, demonstrating the government's commitment to addressing past injustices.