Connect with us

Published

on

Four years ago, Michael Squires received a letter that turned his life upside down.

A brown envelope containing a tax demand for £24,000 landed on his doormat.

It came out of nowhere and gave Mr Squires sleepless nights as he worried about where he would find the money.

“It’s a horrible anxious feeling, I knew that I had taken due diligence and I knew that I had done what I thought was right,” he said.

“So, you feel the system is against you, you feel like you can’t fight back. In a way, you know that you’ve been conned, and you feel stupid… and I felt that for quite some time.”

Mr Squires, a healthcare worker from Leicestershire, is not alone.

‘Unjust campaign is targeting wrong people’

Tens of thousands of people across the country are facing crippling tax demands from HMRC in a harsh campaign that has been linked to 10 suicides.

HMRC has been ruthlessly pursuing people with the “loan charge” which came into force in 2017 through a piece of legislation that targeted those who were paid their salaries through loan schemes. It made individuals liable for tax that their employers should have paid.

Have you been affected by this story?

You can share your experience, pictures or video with us using our app, private messaging or email.

:: Your Report on Sky News apps

:: WhatsApp

:: Email

By sending us your video footage/ photographs/ audio you agree we can broadcast, publish and edit the material.

Tax lawyers described it as an unjust campaign that is targeting the wrong people and undermining the rule of law by overriding statutory taxpayer rights.

HMRC has been targeting workers who had their salaries paid into umbrella companies, which would pay individuals a loan that was typically not paid back. Many of those who signed up, including nurses, supply teachers and council workers, had little or no choice but to take on work through these schemes.

They were directed to the schemes by their work agencies, reassured that their tax and national insurance was being taken care of and that the schemes were HMRC compliant.

In many cases, they were mis-sold.

Tens of thousands in fear of bankruptcy

For years HMRC failed to act against these schemes, which resulted in widespread underpayment of income tax and national insurance. The courts have since ruled that the employers or agencies should have been paying tax to the exchequer. However, the loan charge legislation allowed HMRC to pursue individuals in lieu of the agencies or employers.

Five years ago HMRC started sending letters to individuals, explaining that these schemes were “disguised remuneration schemes”, imposing a tax liability on what it now classified as income and applying interest – then urging them to settle.

In some cases, the bills ran into the hundreds of thousands of pounds. Those who could or would not pay were warned that they would be hit with a loan charge, typically a much larger amount because the total sum was taxed in a single year, often applying a 45% tax rate on the income. It meant that in many cases people were paying back far more than they would have done if they weren’t part of the schemes.

HMRC threatened to take people’s possessions and sell them at auction if they didn’t find the money.

In some cases, the agency set up payment plans, but in others, people had little choice but to take out further loans.

Tens of thousands of people are still living in fear of bankruptcy, and they could be forced to hand over cash if and when they sell their homes.

The consequences have been devastating.

Warning of further suicides

Sky News has spoken to families whose lives have been torn apart. One woman told us that her marriage was breaking down, while others described dangerous mental health spirals.

HMRC has admitted that there have been 10 suicides linked to the loan charge.

It has referred cases of suicide to the Independent Office for Police Conduct (IOPC), which oversees certain serious complaints about the conduct of tax inspectors.

Campaigners have repeatedly warned of the risk of further suicides and have demanded that HMRC provide a 24-hour suicide prevention helpline.

Mr Squires said: “We are being pursued by a very big organisation who hasn’t warned us. I received a warning letter four years later that I may have been employed by a company involved in a scheme that wasn’t legitimate.

“So, we’ve had no warning. HMRC is not out of pocket. The umbrella companies aren’t out of pocket.

“The agencies that pushed it aren’t out of pocket. It’s only the end worker and we’re just normal people.”

Michael Squires says he felt like the system was against him
Image:
Michael Squires says he felt like the system was against him

HMRC targeting individuals rather than scheme organisers

While some of those who engaged in loan schemes entered into them with the explicit intent to minimise their tax bills, a large number were simply trying to do the right thing.

In many cases individuals were advised by their work agencies to sign up to the umbrella companies to streamline their tax affairs, helping them to avoid the complicated process of setting up a limited company.

Others turned to the umbrella companies because they were worried about falling foul of new IR35 rules that apply to contractors operating as limited companies.

The NHS, local authorities and other public sector organisations all engaged workers who were part of these schemes.

Back in 2021 HMRC even admitted that it had at least 15 contractors on its own books who were part of “disguised remuneration schemes” between 2016 and 2020.

Read more from Sky News:
Asylum seekers moved from taxpayer-funded hotels – to other hotels
Warning about huge number of Facebook Marketplace scams
Toddler found starved to death – prompting questions for police

Keith Gordon, a tax barrister, said: “When the contractors were paid, the PAYE rules applied and were meant to ensure the tax was deducted from the salary before it was received by the workers.

“That PAYE was not paid. The workers suffered a deduction but that was just simply taken as fees by the promoters of the schemes which were running rather dubious tax avoidance of agents without contractors’ knowledge.”

He suggested that HMRC were targeting individuals instead of the organisers of the schemes because it was an easier way of recouping the money.

Mr Gordon continued: “Number one: The promoters have deeper pockets and might be able to fight back against unfair legislation.

“Number two: That would probably amount to admitting the revenue made a mistake in the first place.

“Number three: Some of these promoters are now insolvent because they’ve had plenty of years to wind up their affairs and become out of the reach of the tax authorities.”

Keith Gordon have said HMRC is targeting individuals because it is an easier way of recouping the money
Image:
Keith Gordon said HMRC is targeting individuals because it is easier

Loan charge has ‘no legal basis’

MPs and tax lawyers are calling for HMRC to rescind the policy – arguing that it amounts to a retrospective charge that overrides taxpayers’ statutory protections by effectively dismissing time limits on HMRC’s right to investigate tax affairs and by blocking individuals’ rights to fight their case in court.

It is also without any legal precedent.

The courts have repeatedly rejected HMRC’s interpretation that income tax can be applied on loans to individuals.

A 2017 Supreme Court ruling put the onus on the employer to deduct income tax before loans were advanced to an individual.

A 2019 parliamentary report concluded that “the loan charge is in defiance of the rulings of the court… no court case has given the legal basis for the loan charge”.

MPs are preparing to debate the loan charge in parliament today, where they will hear that tens of thousands of people were the victims of widespread mis-selling.

They will question why HMRC is not putting more energy into targeting the promoters and companies responsible for these schemes.

These companies made their money by charging individuals a fee to run the loan schemes. It meant that in many cases people had similar deductions to what they would have had if they were under PAYE.

David Davis, Conservative MP for Haltemprice and Howden, said: “The loan charge has been, frankly, a government-sponsored disaster for a very large number of people, ordinary decent people, nurses and other ordinary people who were faced with a work contract that denied them any employment rights, told them they had to accept and that was the basis on which they got the job.”

He added that HMRC should “go back to the promoters, go back to the contractors who insisted on these terms and say, ‘you can pay at least your share, if not the whole bill’, but they’re not doing that. And I’m afraid in my view, they’ve made a massive ethical error in not doing so”.

An HMRC spokesperson said: “The loan charge seeks to recover tax that has been avoided by disguising income as loans. It is our responsibility to collect the tax that people owe.

“We take the wellbeing of all taxpayers very seriously and recognise that dealing with large tax liabilities can lead to pressure on individuals.

“The support we have in place to help people settle their previous tax avoidance includes offering payment by instalments: these arrangements are based on what the taxpayer can afford, and there’s no upper limit over how long we can spread payments.

“Our message to anyone who is worried about paying what they owe is: please contact us as soon as possible to talk about options.

“Above all we want to prevent people getting into these types of situations and our message is clear – if a tax scheme sounds too good to be true, it probably is.”

Continue Reading

UK

Man suffers cardiac arrest onboard boat trying to reach UK

Published

on

By

Man suffers cardiac arrest onboard boat trying to reach UK

A man has died after suffering cardiac arrest onboard a boat attempting to reach the UK.

The vessel turned back towards Equihen beach on the French coast yesterday morning.

A nurse tried to resuscitate the man but was unsuccessful.

Pic: PA
Image:
Pic: PA

French authorities have now launched an investigation into the circumstances.

A spokesperson for Doctors Without Borders, also known as MSF, has criticised authorities on both sides of the Channel.

Jacob Burns said: “Yet again we have a tragedy in the Channel, that is the consequence of the deadly, costly and ineffective security policies implemented by the UK and France.”

Pic: PA
Image:
Pic: PA

Later on Saturday, a lifeboat carried migrants who have made the voyage into the Port of Dover.

More on Asylum

Photographs showed them huddled under blankets and orange life jackets on board.

Read more from Sky News:
Israel resumes airdrops into Gaza
11 stabbed at US supermarket

Please use Chrome browser for a more accessible video player

Protesters clash over asylum hotels

Provisional statistics from the Home Office suggest almost 24,000 people have arrived on small boats in the UK so far this year.

Towns and cities across the UK have seen protests in recent days, primarily outside hotels believed to be housing asylum seekers.

Continue Reading

UK

Women’s Euros final: The Lionesses face Spain tonight – and they’re seeking revenge

Published

on

By

Women's Euros final: The Lionesses face Spain tonight - and they're seeking revenge

Here the Lionesses are again. Another final. Another showdown with Spain.

All of a sudden, what was once so anticipated and longed for can start to seem expected rather than extraordinary.

What happened to the great underachievers of world football? They are now consistently among the final two going for glory.

England wins
Image:
At Euro 2022, the Lionesses ended England’s 56-year wait for a major trophy by beating Germany 2-1 after extra time. Pic: Reuters

No one is taking that for granted.

Especially not Leah Williamson, with the chance to retain the European Championship trophy lifted three years ago at Wembley.

“The opportunity of tomorrow and what’s on offer is the best thing in football,” the England captain said. “I think we don’t necessarily carry the weight of it and how much it means to people, but we’re aware of it because it means the same to us.”

So often they were only watching other nations making finals.

More on Lionesses

England’s first was the men winning the 1966 World Cup.

England v Spain: All you need to know

Please use Chrome browser for a more accessible video player

Lionesses ‘know what win would mean to nation’

Then, with the rebirth of women’s football after bans and neglect, it was the Lionesses’ turn to make it to the finals – in 1984 and 2009.

And the Three Lions had to wait until 2021 to make it to a final, losing to Italy on penalties at Wembley.

It kickstarted an incredible run of five successive years of finals for England senior teams – with another men’s Euros final defeat in 2024.

The Lionesses have led the way, bringing football home by defeating Germany in the Euro 2022 final at Wembley.

They just missed out on going one better when reaching a first Women’s World Cup final a year later.

Soccer Football - FIFA Women's World Cup Australia and New Zealand 2023 - Final - Spain v England - Stadium Australia, Sydney, Australia - August 20, 2023 England manager Sarina Wiegman reacts REUTERS/Carl Recine
Image:
England manager Sarina Wiegman reacts to defeat against Spain at the Women’s World Cup final in 2023. Pic: Reuters

Soccer Football - FIFA Women's World Cup Australia and New Zealand 2023 - Final - Spain v England - Stadium Australia, Sydney, Australia - August 20, 2023 England's Lauren James looks dejected after losing the world cup final REUTERS/Amanda Perobelli
Image:
Lauren James looks dejected after their World Cup defeat, but is confirmed fit for Sunday’s revenge match against Spain. Pic: Reuters

Now, in Basel, comes the chance for revenge against Spain – even though no one in the England camp is saying that, publicly at least, in Switzerland.

Especially knowing how challenging a task it is coming up again against Aitana Bonmati and Alexia Putella – the recent winners of football’s biggest individual honours.

England fans celebrate after England beat Italy at Women's Euro 2025. Pic: Reuters
Image:
England fans celebrating after England beat Italy to reach the finals. Pic: Reuters

Soccer Football - FIFA Women’s World Cup Australia and New Zealand 2023 - Final - Fans in Manchester watch Spain v England - Piccadilly Gardens, Manchester, Britain - August 20, 2023 England fans watch the match Action Images via Reuters/Jason Cairnduff
Image:
Given England’s history against Spain, it could be a nerve-wracking time for England fans. File pic: Action Images/Reuters

But this is Spain’s first Euros final.

And there is some fear from the world champions at England’s grit and resolve to produce comebacks late in the quarter-finals and semi-finals – with 19-year-old Michelle Agyemang’s goals integral to the fightbacks.

England celebrate after defeating Italy in the Women's Euro 2025 semi-final. Pic: Reuters
Image:
England celebrate their semi-final win against Italy to reach the finals. Pic: Reuters

Michelle Agyemang celebrates scoring her side's opening goal.
Pic: AP
Image:
Michelle Agyemang has propelled England to the Euro 2025 final with two vital goals. Pic: AP

Spain captain Irene Paredes reflected yesterday on how the Lionesses can flip a result late on.

But she was also discussing how their World Cup win was tarnished by the on-pitch kiss that led to former Spanish federation president Luis Rubiales being convicted of a sexual assault on striker Jenni Hermoso.

It sparked a wider clamour in Spain for improved rights and respect for women.

Read more from Sky News:
Lionesses’ help grassroots football
Sarina Wiegman on the Euros final
Listen: Why Lucy Bronze is ‘golden girl’

Please use Chrome browser for a more accessible video player

Spain’s players struggle for respect

“Since then [2023] we took big steps forward,” Paredes said.

“I think this idea is disappearing from society. I still believe we have to continue opening doors… we’re a reference for boys and girls in society, but we still have things to do.”

It is a reminder that while tonight is about collecting silverware, both England and Spain know that emerging as champions can drive further growth in women’s football back home.

Amid it all, they’ll try to savour just what reaching a final means and how rare they are – until recently for English and Spanish women.

Continue Reading

UK

Unlicensed Botox-like injections spark outbreak of disease many doctors have never treated

Published

on

By

Unlicensed Botox-like injections spark outbreak of disease many doctors have never treated

A woman who thought she was being injected with Botox was left unable to swallow and doctors thought she had suffered a stroke – after she contracted a life-threatening illness from a potentially illegal product.

Nicola Fairley is one of dozens of people who have developed botulism linked to unlicensed anti-wrinkle injections.

She had the procedure done with her regular beautician after winning a Facebook competition for three areas of “Botox”.

Nicola Fairley
Image:
Nicola Fairley

“Within two or three hours my forehead and the sides of my eyes had started to freeze,” Nicola says.

“At first I thought ‘amazing’, that’s what I wanted – then it just carried on.”

Nicola was eventually sent to A&E in Durham, where she met several other patients who all had similar symptoms.

Doctors were stumped. “They thought I’d had a stroke,” she says.

More from UK

“We all had problems with our eyes, some of us with our breathing. I couldn’t swallow – they put me on nil by mouth because they were worried I would choke in the waiting room.”

Nicola Fairley
Image:
Doctors were worried Nicola could choke after she was injected with a suspected illegal product

It turns out all of the patients had recently had anti-wrinkle injections containing botulinum toxin.

Health officials believe they were imported, illegal products.

Botulism – the disease they caused – is so rare many doctors never see it in their entire careers.

It can cause symptoms including slurred speech and breathing problems, and can be deadly.

The disease is so unusual, and so many cases were coming in, that doctors exhausted their stocks of anti-toxin and had to ask hospitals as far away as London to get more.

Botulism

The UK Health Security Agency has so far confirmed 38 cases of botulism linked to cosmetic toxin injections, but Sky News has been told of several more.

The outbreak began in the North East but cases have now been seen in the East of England and East Midlands as well.

There are only a handful of legal botulinum toxin products in the UK – of which Botox is one.

But cosmetic treatments are largely unregulated, with anyone allowed to inject products like fillers and toxins without any medical training.

Cheap, illegal products imported from overseas are easily available.

Steven Land
Image:
Dr Steven Land

‘It’s the Wild West’

Dr Steven Land runs Novellus Aesthetics clinic in Newcastle upon Tyne. He worked for decades as an emergency medicine doctor before moving into aesthetics.

He says he has been warning health officials of an outbreak for years.

“It’s the Wild West,” Dr Land told Sky News.

“Because anyone can do this, there is a lack of knowledge around what is legal, what’s not legal, what is okay to be injected.

“These illegal toxins could have 50 units, 5,000 units or rat poison – there could be anything in there.”

Read more from Sky News:
Kelly Osbourne pays tribute to ‘best friend’ Ozzy
Scots divided as Trump flies in for visit

Botulism

Dr Land showed us messages that he says he gets on a weekly basis, from sellers trying to push him cheap, unlicensed products.

They advertise “limited time offers” and cheap bundles on toxins imported from overseas. He calls them “drug dealers”.

“They are preying on the lack of knowledge among non-medical practitioners,” he says.

Consultations on how to regulate the aesthetics industry have been ongoing for years – but so far, no changes have been introduced.

The UK government now says it does plan to regulate certain procedures, but it’s not said how it will do this, or when.

“What will it take?” Nicola says. “One of the women we were with did almost die – she had to be resuscitated.”

Nicola’s beautician has stopped responding to her messages, so she says she still has no idea what the product was “or how much of it is in me”.

She doesn’t know how long her symptoms will last, but just hopes she will eventually recover.

Continue Reading

Trending