LCAG Press Release 26th October 2018

Senior Conservative MP, Peter Bone, has called on the floor of the House of Commons for a statement from the Financial Secretary to the Treasury, Mel Stride MP about the disastrous unintended consequences of the 2019 Loan Charge, including the clear risk of suicide as a result of it.

At questions about the business of the House of Commons, Peter Bone mentioned the Loan Charge Action Group #STOPtheLoanCharge lobby day and in a very powerful question said that people would face bankruptcy and losing their homes and that “I am afraid, some will commit suicide”. Mr Bone said that these consequences “cannot have been the intention of the Government” but that the Financial Secretary should appear before the House of Commons, so that he could be questioned about it.

Mr Bone also raised the fact that the Loan Charge is clearly “retrospective taxation by this Government going back 20 years” and affects “nurses, doctors, teachers, social workers and contractors”.

He also raised the #STOPtheLoanCharge lobby day, the day before, On Wednesday 24th October 2018, when hundreds of campaigners from the Loan Charge Action Group (LCAG) travelled to Westminster to take part in the #STOPtheLoanCharge! lobby day and meet MPs to get the message across that the Loan Charge 2019 is unfair and will have disastrous consequences.

It has emerged that neither Treasury nor HMRC did a proper impact assessment, failing to predict the impact the Loan Charge will have on those affected, on contracting in the UK, on large corporations reliant on skilled contractors and on the NHS.

Thousands of freelance workers face bankruptcy, anxiety and stress due to the Loan Charge, which breaks normal legal convention and allows HMRC to go back twenty years, demanding huge tax bills for arrangements that were legal and declared to them at the time. The victims – who include social workers, teachers, doctors and nurses as well as IT contractors – simply followed professional advice and submitted their tax returns every year, with HMRC never challenging them at the time. Yet now they face life-destroying tax bills they cannot pay and cannot fairly appeal.

LCAG surveyed 500 of its members about the impact of the Loan Charge and a huge 68% of those facing the Loan Charge suffering from depression and anxiety and a shocking 39% – well over a third of all affected – reporting suicidal thoughts and a risk of self-harm.

95 MPs from across the House of Commons have so far signed an Early Day Motion raised by Stephen Lloyd (Liberal Democrat MP for Eastbourne) calling for this unfair retro tax grab to be scrapped.

Stephen Lloyd MP has called the Loan Charge “immoral”, and leading political broadcaster and former Conservative candidate Iain Dale has slammed the Loan Charge 2019 as “outrageous” and has said it is “a political crisis in the making”.

Peter Bone MP said in the House of Commons:

“Retrospective taxation by this Government going back 20 years means that many of these families will lose their home and be forced into bankruptcy and, I am afraid, some will commit suicide. That cannot have been the intention of the Government. May we have a statement from the Financial Secretary next week so that we can ask him questions about something that I am sure the Government did not intend to happen?”.

Richard Horsley, Spokesperson for LCAG said:

“The Loan Charge Action Group are extremely pleased that Peter Bone raised The Loan Charge in the House of Commons and has called for Mel Stride to make a statement to the House of Commons about this disastrous policy which, as Mr Bone has made clear, will lead to people taking their own lives.

“The Loan Charge Action Group is already dealing with desperate people and HMRC and the Treasury are well aware of the suicide risk from their flawed policy, yet are refusing to act”.

“The fact that the Treasury never understood the impact this policy would have is shocking, but they cannot any longer ignore the fact that it will destroy and actually cost lives. No responsible Government can possibly push ahead regardless and it must now listen to its own MPs, like Peter Bone, who realise that the Loan Charge is dangerous. It is time for the Government to do the decent and obvious thing and make the Loan Charge apply only going forward, not retrospectively, which is fair, avoids the risks of bankruptcy, homelessness and suicide and gives certainty to everyone involved”.

Dr Iain Campbell, Secretary General of IHPA added:

“The Independent Health Professionals Association are very pleased that Peter Bone MP highlighted the fact that locum nurses and doctors are caught by the draconian Loan Charge. We know of nurses who will be made bankrupt if the Loan Charge goes through next year as planned. It’s not just 20 years of retrospective taxation, it’s a preventable mental health timebomb.

“The imposition of the flawed IR35 legislation on the public sector has been a fiasco and many locum doctors and nurses have ended up in arrangements which don’t benefit them or the NHS as a whole. The Government needs to listen and act”.

Notes to Editors

Media Contact: Mark Sebright – [email protected] / 07504 042613

  1. The full question and answer, from the Leader of the House Andrea Leadsom MP is here:

Peter Bone:

Yesterday, the loan charge action group lobbied Parliament. It represents 100,000 families, including those of nurses, doctors, teachers, social workers and contractors. Retrospective taxation by this Government going back 20 years means that many of these families will lose their home and be forced into bankruptcy and, I am afraid, some will commit suicide. That cannot have been the intention of the Government. May we have a statement from the Financial Secretary next week so that we can ask him questions about something that I am sure the Government did not intend to happen?

Andrea Leadsom:

I was aware yesterday of a lobby here in Parliament of those affected by the loan charge issue. My hon. Friend is absolutely right to raise it. I encourage him to seek an opportunity to raise it during the Budget debate next week where Treasury Ministers will be available, or indeed on 6 November in Treasury questions.

  1. The question can be viewed here (it is at 11:43:08, you can navigate to the reference to Peter Bone on the right or scroll through the footage).


  1. About the Loan Charge Action Group: The Loan Charge Action Group seeks to raise awareness and reform of the retrospective IR35 tax charge introduced by HM Treasury in the 2017 Budget and build a community where affected individuals can find information and support. The Group does not provide any form of chargeable service or professional advice. Visit


  1. LCAG members’s survey: In summer 2018, LCAG surveyed 500 of its members about the impact of the Loan Charge and the following were the responses as to how if was affecting people:

Depression / Anxiety / Mental health impact:                  68%

Bankruptcy:                                                                          71%

Loss of residence / home:                                                   49%

Divorce / Relationship breakdown:                                    31%

Loss of career:                                                                      30%

Suicidal thoughts / self-harm:                                             39%


  1. The Independent Health Professionals Association is a Trade Association representing thousands of independent health care professionals, including locum doctors and nurses working in the NHS. See .


  1. House of Commons Early Day Motion 1239: That this House expresses its concern at the 2019 Loan Charge; notes that it is retrospective applying back to 1999; further notes that as a result of the introduction of IR35, umbrella companies were set up and recommended by professional advisers and employment agencies; recognises that the Charge will affect contractors, freelancers and agency workers, including social workers, supply teachers and bank and locum nurses and doctors; notes that employment was not an option and in some cases the company or organisation insisted on those arrangements, including to avoid paying National Insurance; notes that these individuals did not receive sick or holiday pay; believes it is unfair that HM Revenue and Customs (HMRC) are pursuing people who acted in good faith rather than the client organisations, agencies or umbrella companies all of whom benefited significantly; notes that HMRC are aggressively pursuing individuals through Advanced Payment Notices with no independent right of appeal; further believes that the Charge is likely to cause financial distress and bankruptcies, impeding HMRC’s ability to recover these tax liabilities and causing a devastating impact on people; believes that retrospectively taxing something that was technically allowed at the time, is unfair; calls on the Government to revise the legislation to avoid significant damage to independent contractors and freelancers in the UK; and calls for the Charge to apply only to disguised remuneration loans entered into after the Finance Act 2017 received Royal Assent.

For full register of MPs supporting Parliamentary motion see

  1. Suicide risk – HMRC and HMT are aware of the suicide risk being created by the Loan Charge (as reported in the Evening Standard, yet so far have refused to set up a 24 hour helpline for people needing urgent counselling, see .