Tax Professionals Urged To Take Action Against Loan Charge

Professionals from across the tax sector are being urged to sign the Loan Charge resolution proposal, which has been produced and published by a group of independent professionals, to finally resolve the ‘Loan Charge Scandal’ and end the nightmare for thousands of UK families.

The group of tax lawyers, tax advisers and accountants, led by Sarah Gabbai of McDermott, Will and Emery and tax barrister Keith Gordon, of Temple Tax Chambers, have published the proposal online and are inviting fellow professionals – accountants, tax advisers, tax lawyers and sector commentators – to add their name to push the Government to listen and act.

In essence, the proposal is a settlement opportunity for those facing the Loan Charge paying a genuinely affordable proportion of the tax that HMRC believes is owed. The proportion would also reflect the fact that people were victims of mis-selling and also the unfairness of pursuing individual taxpayers rather than the promoters and advisers who recommended schemes, who profited significantly from duping their victims.

There are thousands of people affected by the Loan Charge misery which has been ongoing for years now, with no end in sight.  Surely it can’t be right that people are facing: financial and professional ruin; suffering unbelievable stress; family issues; relationship issues; mental health issues; and worst of all very sadly nine suicides – all due to the loan charge.  

It is clear that action is needed to make the government see sense that there is no point hounding people for money that they simply don’t have.  If you are an advisor reading this, please add your name to the list and let’s finally end the suffering.

Sarah Gabbai, specialist tax solicitor who is leading the charge said: “Tax sector professionals should bear in mind that this proposal is not about letting sophisticated tax avoiders off the hook, but instead aims to relieve thousands of contractors, freelancers and agency workers from undue financial hardship in the form of a life sentence of indebtedness to HMRC brought about through the Loan Charge, and through no fault of their own.”

Also commenting, tax barrister Keith Gordon of Temple Tax Chambers said: “It is time for a change of approach from the Treasury and we hope that the new Chancellor, Jeremy Hunt will show both compassion and common sense and work with all parties to seek a fair and final resolution. We hope that with the support of more and more fellow professionals, we will at last see a move towards a fair resolution”.

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