Introduction to the Loan Charge Scandal

The victims of the lending fee received advice from professional bookholders who were paid to bring them to tax avoidance systems. Sky News has seen evidence of auditors who advised their customers to enter credit agreements that were carried out by companies that paid them a commission. These programs were later targeted by HMRC and the workers were affected with huge tax invoices, sometimes hundreds of thousands of pounds.

The Impact on Individuals

In some cases, the tax requirements were crippling. It is a campaign that the people on the brink of bankruptcy, destroyed families, and were associated with 10 suicide cases. MPS is now calling for a public examination of the role of bookholders and other professional attitudes to spread these systems. An independent review of the lender fee is currently in progress, but it is limited to its extent.

What is the Lending Fee Scandal?

It is the latest revelation in a scandal that was often inscribed against their knowledge of tens of thousands of people who were inscribed in tax-avoiding systems. This included contractors who were asked to set up only limited companies and instead to receive payment through the systems that should employ their payment and taxes. Tax avoidance is not illegal, but the HMRC has successfully questioned the tax avoidance programs in the courts, and the employees were then asked to pay the missing tax.

Personal Stories of Affected Individuals

For Richard Clancey, the handling of HMRC’s lender feels like "state-funded bullying". After Mr. Clancey, a retired computer service specialist, offered a contract role in 2010, an auditor in Kent contacted him to help him to set up a limited company. The accountant encouraged him to register for a payment system instead. The presentation was very complex and complicated, and Mr. Clancey trusted the advice of the auditor that the use of this system was right.

Government Reaction and Review

The government has now launched an independent review in the lending fee, and the HMRC held its activities through until this review was completed – but their focus is on helping people to reach an agreement. The review will not examine the historical role of bookholders, promoters, and recruitment agencies, even though you have supported the programs. Politicians and activists have asked for a broader examination.

Accountability and Future Actions

Greg Smith, MP, said: "It is clear that many auditors were directly involved in promoting loan systems. People trustworthy accountants and had the right to rely on this advice, and yet lifelong bills are confronted. Either the HMRC warned the accountants not to recommend these systems, or HMRC did not require the accountants not to do so." Experience has damaged Mr. Clancey’s confidence in the sector. "I will never trust professional financial advice again," he said.

Conclusion and Support

A spokesman for the Institute of Chartered Accountants in England and Wales, an industry authority, said: "We expect auditors to comply with the highest standards in all their work, including tax. Robust rules for members who carry out tax work are contained in standards that have been developed and strengthened to prevent members of members in aggressive tax avoidance." Anyone who feels emotionally desperate or suicidal can call Samaritans for help at 116 123 or an email to jo@samaritans.org in Great Britain. Call the Samaritan branch in your region or 1 (800) 273 talk in the USA.