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HMRC has been accused of using “dangerous and sinister” new tactics in a tax crackdown that has already been linked to 10 suicides.

The government has recently come under pressure over the “Loan Charge” – controversial legislation which made tens of thousands of contractors who were paid their salaries through loans retrospectively liable for tax their employer should have paid.

The clampdown has been branded on par with the Post Office Horizon scandal as the unaffordable bills have been linked to suicides and bankruptcies, while one woman had an abortion due to the financial strain she was under, a debate in parliament heard last month.

HMRC has been criticised for going after individuals – including teachers, nurses and cleaners – rather than the firms that profited from promoting the schemes as tax compliant.

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However ministers have resisted pressure to overturn the policy, saying a review conducted by Lord Morse in 2019 resulted in a series of reforms to reduce the financial pressures of the some 50,000 people affected.

Crucially this included cutting the policy’s 20-year retrospective period so only loans received after December 2010 were in scope.

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However it has emerged that HMRC have been pursuing people involved in loan schemes prior to 2010 through a different mechanism – a s684 notice.

This effectively gives HMRC the discretion to transfer a tax burden from an employer to an employee for the tax years excluded from the Loan Charge.

Conservative MP Greg Smith, co-chair of the Loan Charge APPG, said it “flies in the face” of what Lord Morse intended and risks more people taking their own lives because of the unaffordable bills.

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Loan scheme causing tax turmoil

‘I could lose my home’

Sky News spoke to people who said they had experienced suicidal thoughts and feared becoming homeless after unexpectedly receiving the notices.

While the s684s don’t state how much tax is owed, one father-of-three said his bill could be as high as £250,000 as this is how much HMRC have previously tried to claw back from his time in a loan scheme pre-2010.

The IT consultant, who asked to remain anonymous, said he attempted to settle his tax affairs years ago but communication with the tax office “fizzled out” and following the Morse review he believed the “nightmare” was behind him.

Then in November he received a brown envelope containing an s684 and now he is worried HMRC is “going to absolutely hammer me” just as he is approaching retirement age.

“I have three children and in the worst case scenario I will lose my home.

“I can’t think of another government policy that has caused so much suffering. I fear this could really push some people over the edge.”

Wreathes to honour the suicides linked to the HMRC crackdown
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Wreathes to honour the suicides linked to the tax crackdown. There have now been 10 confirmed by HMRC

‘Dreadful landscape’

It is not clear how many people have been sent the notices.

The government previously estimated that 11,000 people would be removed from the Loan Charge by introducing the 2010 cut off.

While the Loan Charge is seen as particularly punitive because it adds together all outstanding loans and taxes them in a single year, often at the 45% rate, the notices mean HMRC can use its own discretion to turn off an employer’s PAYE obligations and seek the income tax that would have been due that year from the employee instead.

Rhys Thomas, director of the WTT tax firm, told Sky News: “There is considerable and understandable confusion amongst taxpayers that when the Morse review removed the loan charge for payments pre 9th December 2010, it was assumed that HMRC had no further recourse for those years.

“Where enquiries were outstanding for the earlier tax years, HMRC will seek to conclude these by utilising tools such as s684 notices.”

He called the situation a “dreadful landscape” as those in receipt of the notices only have 30 days to respond to HMRC over something “that has taken them 15 years to investigate”.

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There is no right to appeal the notices, so the only way to challenge HMRC is through a costly Judicial Review.

“It’s causing a huge amount of distress and anxiety; it’s hugely concerning and for lots of people it’s come as a surprise,” Mr Thomas said.

WTT is representing around 200 people who are challenging the notices, saying HMRC has not done enough to go after the core parties who should have collected the tax at the time.

A spokesperson for HMRC said the Morse Review “recommend we use our normal powers to investigate and settle cases taken out of the Loan Charge”.

They said they had been issuing the notices since May 2022, having won a case at the Court of Appeal over their use in relation to loan schemes, “so it’s not a sudden change”.

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But campaigners disputed the use of the notices as “normal” and said it is another example of HMRC “abusing its power” to go after individuals rather than the companies that ran and promoted the loan schemes.

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‘We were mis-sold’

These became prolific in the 2000s and saw self-employed contractors encouraged to join umbrella companies that paid them their salaries through loans which were not typically paid back.

HMRC has argued those who signed up to the schemes are tax evaders who need to pay their fair share. But those affected claim they are victims of mis-selling as the arrangements were widely marketed as legitimate by the scheme promoters and tax advisers, and in some cases they had no choice but to be paid this way.

IT consultant Daniel (not his real name), from Stoke, said he did not stand to make any money from the scheme he joined in 2008 and was simply trying to avoid falling foul of complex off-payroll rules known as IR35.

His tax adviser said the scheme was HMRC compliant and the company said they “would sort out my taxes”, he added.

Loan Charge protest
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Loan Charge protest

He said he “did not hear a peep” from HMRC during his time in the scheme and his payslip looked normal as around 20% was being deducted from his salary each month – money experts say will have gone into the profits of those running the company rather than tax to the exchequer.

Now, he is expecting a £30,000 bill after receiving an s684 in November – cash the father-of-four “does not have”.

“If I felt like I had done something wrong I would accept it but I did not make one penny from this scheme, it was all to do with compliance and to make my life as simple as possible.

“This is causing so much stress and frustration. I have had plenty of sleepless nights.

“It feels like the Post Office scandal where we are the little people being backed into a corner and there’s nothing we can do and those who are really guilty are just laughing.”

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HMRC ‘abusing its powers’

The notices have renewed calls for the government to find a new solution to the Loan Charge scandal.

Keith Gordon, a tax barrister, said HMRC “is effectively responsible for this mess because they failed to warn employees that they did not like these schemes”.

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 an easier way of recouping the money

“Most people, if they got a whiff of HMRC dislike, would have left these schemes but they were sold it as being tax compliant. Why should the blame be on people who were at the very worst merely naïve?”

Campaigners fear the s684s will be used across the board instead of the Loan Charge, which Labour has said it will review if it wins the next election.

Steve Packham, of the Loan Charge Action Group, accused HMRC of being “downright reckless” in light of the 10 confirmed suicides, adding: “This is sinister and dangerous and is another example of how out-of-control HMRC is.

“The government must immediately order a stop to these notices and instead agree to find a resolution to the Loan Charge Scandal before there are more lives ruined.”

Greg Smith. Pic: PA
Image:
Greg Smith, co-chair of the Loan Charge Action and Taxpayer Fairness APPG. Pic: PA


A HMRC spokesperson said: “We appreciate there’s a human story behind every tax bill and we take the wellbeing of all taxpayers seriously.

“We recognise dealing with large tax liabilities can lead to pressure on individuals and we are committed to supporting customers who need extra help with their tax liabilities. We have made significant improvements to this service over the last few years.

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

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK.

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How record-breaking Reform UK donor Christopher Harborne made his millions

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How record-breaking Reform UK donor Christopher Harborne made his millions

Who is the man behind the record-breaking multi-million pound donation to Reform UK?

Christopher Harborne gave Nigel Farage‘s party £9m in August, according to new data published by the Electoral Commission. The contribution ranks as the largest ever single donation from a living person in UK political history.

Born in Britain, Mr Harborne is a businessman who owns several companies, employing more than 600 people worldwide, according to a court filing dated last year.

Reform UK leader Nigel Farage
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Reform UK leader Nigel Farage

Yet he’s not resident in the UK, and is also a citizen of Thailand, where he is known as Chakrit Sakunkrit, and has lived and worked there for 20 years.

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Nonetheless, he has a long history of political donations to British parties.

Electoral Commission data shows he has previously donated to the Conservatives, gifting them £10,000 in May 2001, and continuing to support them with close to £2m in donations by October 2022.

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Christopher Harborne, furthest right, joins Boris Johnson, left, during his visit to Lviv, Ukraine. Pic: City of Lviv
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Christopher Harborne, furthest right, joins Boris Johnson, left, during his visit to Lviv, Ukraine. Pic: City of Lviv

But there was been some overlap with his backing of Reform, which first received a donation from him in April 2019, for £200,000.

He’s also donated to Mr Farage personally, giving £27,616.76 in January so the Reform leader could attend the second inauguration of Donald Trump.

He paid another £32,836 for the Reform and a member of staff to fly to the US following the attempted assassination of Trump in July last year.

And he gave one of the biggest donations ever made to an individual UK politician when he backed Boris Johnson to the tune of £1m in 2022.

Christopher Harborne sits second left from Boris Johnson, centre, during his visit to Lviv, Ukraine. Pic: City of Lviv
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Christopher Harborne sits second left from Boris Johnson, centre, during his visit to Lviv, Ukraine. Pic: City of Lviv

He served as an advisor to Mr Johnson during the former PM’s trip to Kyiv in 2023.

His latest cash injection to Reform UK breaks the previous record for a donation from a living person, which was £8m from supermarket tycoon Lord David Sainsbury to the Liberal Democrats in 2019.

The largest ever single donation to a UK political party was from his cousin, Lord John Sainsbury, who left more than £10.2m to the Conservatives in 2022 in his will.

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Electoral Commission records show Mr Harborne has made at least £24.5m in UK political donations since 2001.

But where is his money from?

Several of his businesses come under the banner of AML Global, including one registered in the UK, which has a London address listed with Companies House.

AML Global is described in a court filing as an international jet fuel broker that works with oil companies, and which has been awarded $39m (£29m) worth of contracts by the US Department of Defense.

Harborne was also an early investor in Bitcoin and other cryptocurrencies.

On his LinkedIn page, the businessman further describes himself as chair of Sherriff Global Group.

His profile shows he was educated at INSEAD business school, Cambridge University, and Westminster School.

Figures from the Electoral Commission released this week show Reform UK reported the most donations of any party in the third quarter of 2025, a total of £10,526,846.

By contrast, the Conservatives reported £7,038,861 in the same period, Labour £2,564,786, and the Liberal Democrats £2,174,712.

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Reeves between a rook and a hard place after claims she ‘made up’ chess championship

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Reeves between a rook and a hard place after claims she 'made up' chess championship

As an opening gambit at PMQs, Kemi Badenoch attacked Labour’s knight, the prime minister, over his Treasury queen, Rachel Reeves.

“We now know the black hole was fake, the chancellor’s book was fake, her CV was fake – even her chess claims are made up,” said the Tory leader.

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“She doesn’t belong in the Treasury; she belongs in la-la land.”

Chess claims made up? Where did that attacking move from Kemi come from? Hasn’t the chancellor told us for years that she was a national chess champion in 1993?

Indeed she has. “I am – I was – a geek. I played chess. I was the British girls’ under-14 champion,” she declared proudly in a 2023 interview with The Guardian.

She posted a video showing her playing chess in parliament and before last week’s budget posed for photos with a chessboard.

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But her chess champion claim has been disputed by a former junior champion, Alex Edmans, who has accused her of misrepresenting her credentials.

“Her claim was quite specific,” Edmans, now a professor of finance at the London Business School, told Ali Fortescue on the Politics Hub on Sky News.

“She said she was the British girls’ under-14 champion. There was one event that can go on that title, which is the British Championship. And in the year that she claimed, it was Emily Howard who won that title instead.

“She did indeed win a quite different title. There was a British Women’s Chess Association championship, but that’s a more minor title. I’ve won titles like the British squad title, but that’s not the same.

“Just like running a marathon in London is not the same as the London Marathon, there was one event which is very prestigious, which is the British Championship.

“So the dispute is not whether she was a good or bad chess player. That shouldn’t be the criterion for a chancellor. But if you weren’t the British champion, you shouldn’t make that statement.”

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Oh dear! So now, along with allegations of plagiarism, a dodgy CV and “lying” – according to Ms Badenoch – about the nation’s finances, the chancellor is between a rook and a hard place.

Or is she? “This story is absolute nonsense,” a Treasury mate told Sky News. No word from the No.10 knight, Sir Keir Starmer, or his Downing Street ranks, however.

Emily Howard, as it happens, is now an accomplished composer, having graduated from the chessboard to the keyboard.

The chancellor’s opponents, meanwhile, claim her budget blunders means the Treasury queen has now become a pawn, there for the taking.

But since Rachel Reeves did indeed win a chess title, just not the one she claimed, her supporters insist she can justifiably claim to have been a champion.

So it’s too soon for Kemi Badenoch and the Conservatives to claim checkmate. The dispute remains a stalemate. For now.

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Reform UK gets record £9m donation from ex-Tory donor

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Reform UK gets record £9m donation from ex-Tory donor

Nigel Farage’s Reform UK have received its largest ever donation, with former Conservative donor Christopher Harborne handing the party £9m.

The donation – one of the largest in British political history – was made in August this year, according to filings from the Electoral Commission.

Mr Harborne, a British businessman based in Thailand, previously donated millions to Reform in 2019, when it was known as the Brexit Party, and has continued to give the party and Mr Farage cash.

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Between 2001 and 2022, he donated close to £2m to the Conservatives, according to Companies House.

The £9m handed to Reform UK on 1 August this year is the largest political donation on record from a living person, after Lord Sainsbury left £10m to the Conservatives in his will in 2023.

Educated in the UK, Mr Harbone is now based in Thailand, where he chairs the investment company Sherriff Global Group.

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He also paid around £28,000 for Mr Farage to travel to the US for Donald Trump’s inauguration this year, and roughly £33,000 for the Reform leader to visit the president after the failed assassination attempt in the run-up to the election.

Responding to a question at a news conference from Sky News deputy political editor Sam Coates, Mr Farage said Mr Harborne has business interests all around the world, but his “natural home” was the UK.

Mr Farage says no promises were made in exchange for the money. Pic: PA
Image:
Mr Farage says no promises were made in exchange for the money. Pic: PA

He says the donation is “nothing out of the blue”, pointing to Mr Harbone donating significant sums to the Brexit Party.

“I think what he wants to do, really, is to try and help us get onto a level playing field with the trade union funded Labour Party, and a Conservative Party where there seems to be a remarkable correlation, I can’t think why, between donations and membership of the House of Lords,” Mr Farage said.

He added that “hand on heart” he has not promised anything to Mr Harborne in exchange for the money, adding that speaks to the Bangkok-based businessman “maybe once a month, maybe once every six weeks”.

Professor Justin Fisher of Brunel University, an expert in political donations, told Sky News: “It exposes the fact that this is a person who is a British citizen but is able to influence British politics without being subject to the laws that any Reform government might bring in, any tax arrangements that a Reform might bring in.

“This is foreign money by any other name.”

The professor pointed to the fact that in the 2022 Election Act under the Conservatives, the law was changed so that British citizens could live abroad their whole lives and stay on the electoral roll, allowing them to donate.

Previously, the cap had been set at 15 years of living overseas.

He added that it was not surprising to see a person with an interest in a particular policy area – like cryptocurrencies – give money to a political advocating for this cause.

Read more:
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New rules may stop unlimited donations to Reform UK

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Will Tories and Reform unite?

According to the Electoral Commission, political parties raised £24m in the third quarter of this year – up from £10m over the same time period last year, and £11m last quarter.

With the local and national assembly elections coming up in May next year, parties are building their war chests for the campaign.

Reform reported taking a total of £10,526,846, more than the Tories (£7,038,861), Labour (£2,564,786), and the Lib Dems (£2,174,712).

This means Mr Farage’s party raised almost as much as the three main parties combined (£11,778,359).

While the Green Party has reported an increase in donations since Zack Polanski became leader, these figures mostly cover the time before he took office, with the party only accepting £371,753.

Professor Jonathan Hopkin of the London School of Economics told Sky News the donation “shows the power of money in politics if one individual can make such a big difference to the resources available to a political party”.

He added that big donors giving to Reform who also have links to the Tories could separately “pressurise the Conservatives to step aside their candidates in seats that Reform are better placed to win”.

The fact that Reform has received large volumes of cash from a former Tory donor will do nothing to extinguish reports that the two parties are considering an electoral pact in time for the next general election.

The Financial Times reported that such an agreement was spoken about by Mr Farage in a discussion with party donors.

YouGov graphic of voter intention from 30 November to 1 December 2025. Pic: YouGov
Image:
YouGov graphic of voter intention from 30 November to 1 December 2025. Pic: YouGov

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Both the Conservatives and Reform have denied they will do a deal.

Reform currently lead voting intention polls, with the Conservatives and Labour together in joint second place, followed by the Greens.

A spokesperson for the Reform Party said: “This quarter’s figures show the incredible progress Reform UK is making. This is further evidence that we have all the momentum in British politics.”

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