Rise in suicide attempts linked to HMRC tax crackdown as MPs criticise ‘sham’ review into loan charge schemes | Politics News

Another four people tried to take their own lives regarding the loan charge scandal, which left tens of thousands of contractors with large accounts for taxes that their employers had to pay, Sky News learned.

HMRC made 17 references to the police watchdog (Independent Police behavior office) about the suicide attempts of 14 people, above the 13 references of ten people previously known in October 2023.

The numbers, which were unveiled to Sky News in a freedom of information request, come top -on the 10 well -known suicide of people trapped in the controversial tax permission, which upset MPs across the political spectrum.

The loan costs have been announced in George Osborne’s 2016 budget and freelancers made liable for years of retrospective income and national insurance tax after paying their salaries in loans.

HMRC was accused of harassing ordinary people who had the victim of wrong sale, as the arrangement was widely promoted By advocates, accountants and tax staff in the 2000s and 2010s.

Labor has launched An independent overview of the policy But champions branded it a ‘crook’ and ‘cover’, as it does not look at the principle of loan costs, only ways to abandon people.

‘Trapped in an endless nightmare’

The three-three-Ray Newton is thousands of people who paid an umbrella business to run his fees while working as an IT contractor for Barclays Bank from 2009-2010.

They paid him in tax-free loans on ensuring that it was “completely above the board”, but in 2016 he was hit with an unexpected HMRC account of £ 16,000.

Ray paid it off, but last year he suddenly faced claims for another £ 15,000 in income tax and £ 14,000 in interest that suffered without his knowledge all the time. The “Bombshell Bill” also included £ 12,000 on inheritance taxes on the loans, despite being classified as wages.

“Instead of going for the tax that was avoided, they go to the jar,” Ray, 70, said.

The bill arrived in the post after eight years of sporadic letters from HMRC and said Ray still has to settle, but not explain why or how much of it often ignores him when inquiring. It almost destroyed him.

“I literally begged – please tell me what I owe. It made me look like I was a bad person … My wife actually left me and I really got into a state of this,” he said.

“I had counseling, I was on antidepressant drugs, I was on sleeping pills. You know, my whole world has kind of fell apart. It was like being trapped in an endless nightmare.

“I attempted suicide, but I was stopped by a member of the public.”

Ray is now in a better place and is back with his wife, while HMRC recently accepted that the inheritance tax is not due and gives him misleading or wrong information.

But he is skeptical about the review.

“The government cannot afford the implications of a proper investigation or does not want to be a whitewash.”

HMRC says it takes the well -being of all taxpayers seriously and is committed to identifying and supporting customers who need extra help with their tax matters. It is said to have made significant improvements to this service over the past few years.

Sky News spoke to several victims of loan charges who said although they did not disput, due to tax, the chaotic communication of HMRC made it more difficult to establish and move on.

“The impact was devastating”

For the two of the two Stephen Bishop, the long protracted struggle contributed to the division of his marriage and led him to pronounce suicidal thoughts.

He was told to join a loan scheme by the company that employed him and has since faced claims in an unpaid tax from £ 80,000 – more than he would earn in a year – to £ 20,000, while a payment plan drawn up in 2018 was randomly canceled.

It took many years to reach a new settlement and after finally agreed, he was beaten with an interest account of £ 10,000 for the late payment.

HMRC continued to contact him after requesting to go through his accountant because of his weakened mental health, with an inspector who even arrived at his door.

“I can honestly understand why so many people took their own lives on this. The impact had my devastating,” he said.

What is being reviewed?

Since 2016, HMRC has agreed 25,000 settlements with employers and individuals over their use of loan schemes, which will increase about £ 4.2 billion in revenue.

However, more than 40,000 people and 5,000 employers have yet to resolve themselves.

Labor promised an ‘independent overview’ in opposition, with Treasury Minister James Murray said the loan charge had become a nightmare for ordinary people … who were the victims of wrong selling and facing financial ruin.

After winning the election, Mr. Murray also attended a ‘disturbing meeting’ where many victims of the loan levies broke down tears, according to Greg Smith, co-chair of Tory of the loan cost and taxpayer fairness, who suggested that the ‘partial review’ would continue with a tremendous ignorance or the bottom line.

Campaign hoped that the investigation into the principle of retrospective tax legislation would look, the role of promoters who earned profits from the schemes and HMRC’s actions.

However, it will only investigate the obstacles that those who do not yet have to settle and recommend ways to do so by the summer. And it is managed by former HMRC boss Ray McCann, who leads to some questioning its independence.

‘Internal stitch-up’

Sir Iain Duncan Smith, former Tory leader and another long-term critic of loan costs, calls the review an “internal HMRC stitch-up … managed by an ex-hmrc honcho”.

He said the loan costs are a ‘disaster’ made by the tax office because it is slow to ward off the loan schemes and the government must ‘draw a line below and write off the debt’.

“It seems to me that any MP who becomes a minister of the Treasury is captured by them. It must be a full -scale overview where the division of the debt is part of this,” Duncan Smith added.

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In a letter responding to the concerns about the Appg, Mr. Murray said it would have been “irresponsible for the government not to recognize the challenging fiscal circumstances we inherited” and “that is the context in which this review takes place”.

He also has the independence of Mr. McCann defends and said the former president of the Chartered Institute for Taxation is “a highly respected figure in the tax world whose name was proposed by one of the loan charge”.

The government refused to comment further while the review was underway.

Anyone who feels emotionally distressed or suicide can call Samaritans for help at 116 123 or e -mail jo@samaritans.org in the UK. Call the Samaritans branch in your area in the US or 1 (800) 273