HMRC accused of ‘airbrushing’ Loan Charge scandal amid calls for inquiry
Campaigners and MPs are calling for a parliamentary inquiry into the Loan Charge scandal – accusing HMRC of “airbrushing” its approach to a harsh tax crackdown linked to several suicides.
The Loan Charge Action Group (LCAG) has hit out at the Treasury Committee after it wrote to the tax office requesting information on its approach to contractor loan schemes.
These were widely – but wrongly – promoted by employers as HMRC compliant in the early 2000s, and tens of thousands of workers who signed up for them are now facing life-ruining bills for tax on their salaries which their employer should have paid.
Campaigners said the Treasury Committee letter was “little more than a tick box exercise triggered by all of the recent coverage of the Loan Charge” and an inquiry which hears from victims and tax experts is needed.
Steve Packham, spokesperson for the LCAG, told Sky News: “It is frustrating that instead of holding a full select committee inquiry to hear evidence from those facing the Loan Charge and tax sector professionals, the Treasury select committee has merely written to HMRC.
“It seems that this is little more than a tick box exercise triggered by all of the recent coverage of the Loan Charge, allowing HMRC to pedal the usual misleading and partial responses.”
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Loan scheme causing tax turmoil
He accused the committee of a “failure of parliamentary scrutiny in the same way the Post Office were not properly challenged for too long” – in reference to the Horizon IT scandal.
“What is needed is a full select committee inquiry and we urge committee members to announce one and call a variety of witnesses, including those whose lives have been ruined by HMRC’s approach.”
Sky News has previously reported on how tens of thousands of people across the country are facing crippling tax demands from HMRC in a campaign that has been linked to 10 suicides.
What is the Loan Charge?
It all comes back to a 2016 piece of legislation that made individuals responsible for tax which their employers should have paid – the “Loan Charge”.
HMRC has been criticised by MPs and tax experts for not policing the contractor sector at the time of the schemes.
Employers were paid their salaries in loans – and it was widely marketed as HMRC compliant.
Some people facing the Loan Charge, including nurses, cleaners and teachers, have said they had no choice but to be paid this way when they accepted their jobs, while others insist they were trying to do the right thing and streamline their tax affairs following the introduction of complex self-employment rules.
No scheme promoters prosecuted
In his letter to the treasury committee, Jim Harra, the director of HMRC, confirmed that there have been no prosecutions of individuals “for the promotion and/or operation” of what it now calls Disguised Remuneration (DR) schemes – noting that “promotion or operation of mass-marketed tax avoidance schemes is not by itself a criminal offence”.
He said HMRC did not have figures on how many people had joined the schemes “unwittingly” but “the motives of those engaging in tax avoidance schemes do not affect whether tax is due”.
Mr Harra’s letter also revealed that the median settlement for individuals is £19,000, though noted about 40,000 people have still not settled. Approximately 50,000 people are estimated to be affected in total.
He denied accusations the department operates without scrutiny, saying it is “simply not the case that HMRC is unaccountable” and “we act under the general direction of ministers”.
Taking a firm line on recent criticism of “sinister” new tactics, he said: “We do not accept claims that we have been deliberately heavy-handed. We certainly do not intentionally write to taxpayers on specific days, such as their birthday, to increase the impact of our interventions.
“We do not play with people’s emotions. We recognise that there is a human story behind each one of these cases and we take our Charter responsibilities very seriously.”
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HMRC ‘airbrushing the whole mess’
Chair of the Treasury Committee, Conservative MP Harriett Baldwin, said: “Many of my colleagues have raised concerns about the implementation and management of the Loan Charge by HMRC. As a Committee, we believed it was important that we got answers both for our fellow MPs and their constituents.
“I hope the information contained in Mr Harra’s response makes a useful contribution to the public debate.”
However, fellow Conservative MP Greg Smith, co-chair of the Loan Charge APPG, said while it is “welcome” the committee is raising the Loan Charge “as well as writing to HMRC, it needs to also hear from victims and tax professionals who can show that so much of what HMRC says is simply not an accurate picture of the Loan Charge Scandal”.
Greg Smith. Pic: PA
He said: “As usual, HMRC are airbrushing the whole mess and giving the false impression that they acted at the time and warned users, when the reality is that they failed to police the contracting sector and failed to warn contractors and then invented the Loan Charge so they go back retrospectively, but targeting only the workers, not those who operated the schemes.
“With 10 confirmed suicides and 13 attempted suicides, as well as countless lives already ruined, the Treasury Select Committee should also seek evidence from other parties, to get a more realistic picture of the whole Loan Charge Scandal.”
He warned: “Without a change of approach from HMRC, we are very fearful of the consequences and we hope the Select Committee will join us in properly holding HMRC to account, before more lives are ruined”.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK.
The US Securities and Exchange Commission (SEC) has postponed deciding on whether to greenlight two proposed cryptocurrency exchange-traded funds (ETFs) holding Dogecoin and XRP, filings show.
The US regulator has delayed its deadline for ruling on the proposed ETF listings until June, according to two filings reviewed by Cointelegraph.
The filings were responses to March requests from US exchanges NYSE Arca and Cboe BZX Exchange to list Bitwise’s Dogecoin (DOGE) ETF and Franklin Templeton’s XRP (XRP) ETF, respectively.
They came on the same day that Nasdaq, another US exchange, asked for permission to list a 21Shares Dogecoin ETF.
Dogecoin is the world’s most heavily traded memecoin, with a market capitalization of around $26 billion as of April 29, according to data from CoinGecko. XRP is the native token of the XRP Ledger blockchain network. It has a market capitalization of approximately $133 billion, CoinGecko data shows.
Related: Institutions break up with Ethereum but keep ETH on the hook
Deluge of filings
In 2025, the SEC has fielded requests to authorize dozens of altcoin ETFs for US listing. As of April 21, approximately 70 crypto ETFs were awaiting the SEC’s review.
Asset managers are proposing funds holding “[e]verything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between,” Bloomberg analyst Eric Balchunas said in an April 21 post on the X platform.
The deluge of proposals comes as US President Donald Trump pushes the SEC to take a more accommodating stance toward cryptocurrencies.
However, analysts caution investor demand for altcoin ETFs may be tepid in comparison to funds holding core cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).
“Having your coin get ETF-ized is like being in a band and getting your songs added to all the music streaming services,” Balchunas said.
“Doesn’t guarantee listens but it puts your music where the vast majority of the listeners are.”
Although US exchanges are embracing crypto ETFs, they are also urging the SEC to take a tough regulatory posture toward digital assets. In an April 25 comment letter, Nasdaq encouraged the SEC to hold digital assets to the same compliance standards as securities if they constitute “stocks by any other name.”
Magazine: Financial nihilism in crypto is over — It’s time to dream big again
The United States exchange Nasdaq has asked regulators for permission to list a 21Shares exchange-traded fund (ETF) holding the popular memcoin Dogecoin, regulatory filings show.
The move follows 21Shares’ April 10 filing of its initial proposal to launch its Dogecoin ETF, shortly after similar applications from rivals Bitwise and Grayscale. The asset manager has also sought regulators’ permission to list ETFs holding other cryptocurrencies, including Solana (SOL), XRP (XRP), and Polkadot (DOT).
Nasdaq must gain approval from the Securities and Exchange Commission (SEC) before it can list and trade the fund. The request amounts to a regulatory review process that could determine whether Dogecoin becomes accessible to a broader range of investors through an ETF structure.
Related: 21Shares files for spot Dogecoin ETF in the US
Onslaught of altcoin ETFs
Fund issuers requested to list dozens of altcoin ETFs after US President Donald Trump instructed the SEC to take a friendlier stance toward cryptocurrencies after his second term began in January.
As of April 21, more than 70 crypto ETFs were awaiting the SEC’s review. The list includes alternative layer-1 (L1) native tokens, such as SOL and Sui (SUI), as well as memecoins such as Bonk (BONK) and Official Trump (TRUMP).
While exchanges such as Nasdaq seek to list more crypto ETFs, they are also pushing for firmer US regulatory oversight of digital assets. In an April 25 comment letter, Nasdaq urged the SEC to hold digital assets to the same regulatory standards as securities if they constitute “stocks by any other name.”
Dogecoin utility
Dogecoin (DOGE) is a popular memecoin with a market capitalization of nearly $26 billion as of April 29, according to CoinGecko.
It is distinct from most other memecoins because DOGE is the native token of the Dogecoin network.
The proof-of-work blockchain network is designed as a faster, cheaper alternative to Bitcoin (BTC) for peer-to-peer payments.
It processed more than 40,000 transactions in the past 24 hours, according to data from Bitinfocharts.com.
In September 2024, blockchain developers QED Protocol and Nexus tipped plans to launch a layer-2 (L2) scaling solution designed to bring smart contracts to Dogecoin.
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The United Kingdom’s Treasury and Chancellor of the Exchequer, Rachel Reeves, have proposed new crypto rules aimed at “support[ing] innovation while cracking down on fraudsters.”
In an April 29 notice, the UK government announced draft rules for cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), that would bring “crypto exchanges, dealers and agents” in line with regulations, as many residents were “exposed to risky firms and scams.” It cited discussions with US government officials, including a proposed US-UK cross-border sandbox from the Securities and Exchange Commission’s Hester Peirce.
“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” said the notice. “The government will bring forward final cryptoasset legislation at the earliest opportunity, following engagement on the draft provisions with industry.”
Related: UK trade bodies ask government to make crypto a ‘strategic priority’
Treasury and Reeves said the UK was committed to making the country a “global hub for digital asset technologies,” referencing the goals of the previous government under the Conservative Party. A 2023 consultation paper from Treasury proposed “bringing a wide range of cryptoasset activities” — including trading and issuing stablecoins — in line with UK regulations.
Praise from industry
In a statement shared with Cointelegraph, Ian Silvera, the associate director for the self-regulatory trade association CryptoUK, called the government announcement a “very much welcomed and a big victory” for crypto firms. However, he added that the industry could also benefit from regulatory clarity on liquid staking and DeFi.
“Though there has been good regulatory progress from the [Financial Conduct Authority], which published its crypto roadmap late last year, the UK government first committed to becoming a global crypto hub in 2022,” said Silvera. “Progress has been slow since then, but as the Chancellor has recognised herself the mainstreaming of the industry has continued, with now 12% of all UK adults owning some sort of crypto, up from 4% in 2021.”
The FCA plans to publish final rules on crypto sometime in 2026, setting the groundwork for the UK regulatory regime to go live. The roadmap to greater regulatory clarity in the UK could follow the European Union, which started to implement its Markets in Crypto-Assets (MiCA) framework in December.
Magazine: Financial nihilism in crypto is over — It’s time to dream big again
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