The Loan Charge is a piece of legislation that seeks to charge people tax on income that they received going back 10 years or more. Thousands of contractors are affected, many of whom had no idea that their income had not been properly taxed. Some of those affected were recommended the loan scheme by their recruitment agency, some had no choice about signing up to the scheme, and some had no idea that they were in a so-called loan scheme. The tax bills being sent to those affected are huge and often impossible to pay.
To break this deadlock, McDermott’s Tax lawyer Sarah Gabbai and a group of tax professionals have called on HMRC and the government to take a constructive, pragmatic approach by recommending that they implement a settlement opportunity on individually negotiated, affordable terms that would offer closure and finality to affected taxpayers.
Listen to Sarah and Keith Gordon, tax barrister at Temple Tax Chambers talk to iwork about their proposed settlement.