Rise in suicide attempts linked to HMRC tax crackdown as MPs criticise ‘sham’ review into loan charge schemes
Four more people have attempted to take their own life in relation to the loan charge scandal, which has left tens of thousands of contractors facing huge bills for tax their employers should have paid, Sky News has learnt.
HMRC has made 17 referrals to the police watchdog (Independent Office for Police Conduct) over the suicide attempts of 14 people, up from the 13 referrals of 10 people previously known about in October 2023.
The figures, revealed in response to a Freedom of Information request by Sky News, come on top of the 10 known suicides of people caught up in the controversial tax crackdown, which has alarmed MPs across the political spectrum.
The loan charge was announced in George Osborne’s 2016 budget and made freelancers liable for years of retrospective income and national insurance tax after being paid their salaries in loans.
Former Tory chancellor George Osborne
HMRC has been accused of harassing ordinary people who were victims of mis-selling, as the arrangement was widely promoted by lawyers, accountants and tax professionals in the 2000s and 2010s.
Labour has launched an independent review into the policy but campaigners have branded it a “sham” and “cover-up” as it doesn’t look at the principle of the loan charge, only ways to make people settle.
‘Trapped in an endless nightmare’
Father-of-three Ray Newton is one thousands of people who paid an umbrella company to manage his fees while working as an IT contractor for Barclays Bank from 2009-2010.
They paid him in tax-free loans on the assurance it was “completely above board”, but in 2016 he was hit with an unexpected HMRC bill of £16,000.
Ray Newton has faced demands for almost £60,000 from HMRC
Ray paid it off, but last year he suddenly faced demands for another £15,000 in income tax and £14,000 in interest that had been accruing the whole time without his knowledge. The “bombshell bill” also included £12,000 of inheritance tax on the loans despite them being classed as wages.
“Instead of going for the tax that was avoided they are going for the jugular,” said Ray, 70.
The bill arrived in the post after eight years of sporadic letters from HMRC saying Ray still needed to settle but not explaining why or by how much, often ignoring him when he inquired. It nearly destroyed him.
Ray attempted suicide over the stress of the loan charge
“I was literally begging – please tell me what it is I owe. It made me look as though I was a bad person… my wife actually left me and I got really in a state over this,” he said.
“I was having counselling, I was on antidepressant drugs, I was on sleeping pills. You know, my whole world was sort of falling apart. It was like being trapped in an endless nightmare.
“I did attempt suicide but I was stopped by a member of the public.”
Ray is now in a better place and is back with his wife, while HMRC has recently accepted the inheritance tax isn’t owed and giving him misleading or incorrect information.
But he is sceptical about the review.
“The government can’t afford or don’t want to afford the implications of a proper inquiry. This is going to be a whitewash.”
HMRC says it takes the wellbeing of all taxpayers seriously and is committed to identifying and supporting customers who need extra help with their tax affairs. It says it has made significant improvements to this service over the last few years.
Sky News spoke to several loan charge victims who said while they didn’t dispute owing tax, HMRC’s chaotic communication was making it harder to settle and move on.
“The impact has been devastating”
For father-of-two Stephen Bishop, the long drawn-out battle contributed to the breakdown of his marriage and led him to express suicidal thoughts.
He was told to join a loan scheme by the company which hired him and has since faced demands in unpaid tax ranging from £80,000 – more than he’d earn in a year – to £20,000 while a payment plan set up in 2018 was randomly cancelled.
It took many more years to reach a new settlement and after £18,000 was finally agreed upon, he was whacked with a £10,000 interest bill for the late payment.
Stephen Bishop says the stress of HMRC’s conduct impacted his marriage
HMRC continued to contact him after he requested to go through his accountant due to his deteriorating mental health, with an inspector even showing up at his door.
“I can honestly understand why so many people have taken their own lives over this. The impact has been devastating on me,” he said.
What is being reviewed?
Since 2016, HMRC has agreed 25,000 settlements with employers and individuals over their use of loan schemes, which will raise around £4.2bn in revenue.
However, over 40,000 people and 5,000 employers are yet to settle.
Labour promised an “independent review” in opposition, with Treasury minister James Murray saying the loan charge had “become a nightmare for ordinary people… who are the victims of mis-selling and face financial ruin”.
The loan charge has left many people facing financial ruin
After winning the election Mr Murray also attended a “harrowing meeting” where many loan charge victims “broke down in tears”, according to Greg Smith, Tory co-chairman of the Loan Charge and Taxpayer Fairness all-party parliamentary group (APPG), who suggested the “partial review” was down to “wilful ignorance or the bottom line” and warned it could lead to more suicides if people continue to face financial ruin.
Campaigners hoped the inquiry would look at the principle of retrospective tax legislation, the role of promoters who made profits from the schemes and HMRC’s conduct.
However, it will only examine the barriers facing those who have yet to settle and recommend ways for them to so do by the summer. And it is being run by former HMRC boss Ray McCann, leading some to question its independence.
‘Internal stitch-up’
Sir Iain Duncan Smith, former Tory leader and another long-term critic of the loan charge, called the review an “internal HMRC stitch-up… ran by an ex-HMRC honcho”.
He said the loan charge is a “disaster” made by the tax office for being slow to crack down on the loan schemes and the government should “draw a line under this and write the debt off”.
Sir Iain Duncan Smith
“It seems to me any MP that goes to be a minister of the Treasury gets taken prisoner by them. This should be a full-scale review where apportioning blame is part of this,” Mr Duncan Smith added.
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In a letter responding to concerns of the APPG, Mr Murray said it would have been “irresponsible for the government not to acknowledge the challenging fiscal circumstances that we inherited” and “that is the context in which this review takes place”.
He also defended Mr McCann’s independence, saying the former president of the Chartered Institute for Taxation is “a highly respected figure in the tax world whose name was suggested by one of the loan charge campaigners”.
The government declined to comment further while the review is ongoing.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK
The first thing you notice when immigration officers stop a possible illegal moped delivery driver is the speed in which the suspect quickly taps on their mobile.
“We’re in their WhatsApp groups – they’ll be telling thousands now that we’re here… so our cover is blown,” the lead immigration officer tells me.
“It’s like a constant game of cat and mouse.”
Twelve Immigration Enforcement officers, part of the Home Office, are joining colleagues from Avon and Somerset Police in a crackdown on road offences and migrants working illegally.
The West of England and Wales has seen the highest number of arrests over the last year for illegal workers outside of London.
“It is a problem… we’re tackling it,” Murad Mohammed, from Immigration Enforcement, says. He covers all the devolved nations.
“This is just one of the operations going on around the country, every day of the week, every month of the year.”
Murad Mohammed, from Immigration Enforcement, says his team are attempting to tackle the issue
Just outside the Cabot Circus shopping complex, we stop a young Albanian man who arrived in the UK on the back of a truck.
He’s on an expensive and fast-looking e-bike, with a new-looking Just Eat delivery bag.
He says he just uses it for “groceries” – but the officer isn’t buying it. He’s arrested, but then bailed instantly.
We don’t know the specifics of his case, but one officer tells me this suspected offence won’t count against his asylum claim.
Such is the scale of the problem – the backlog, loopholes and the complexity of cases – that trying to keep on top of it feels impossible.
This is one of many raids happening across the UK as part of what the government says is a “blitz” targeting illegal working hotspots.
Angela Eagle, the border security and asylum minister, joins the team for an hour at one of Bristol’s retail parks, scattered with fast food chains and, therefore, delivery bikes.
Border security and asylum minister, Angela Eagle, speaks to Sky News
She says arrests for illegal working are up over the last year by 51% from the year before, to more than 7,000.
“If we find you working, you can lose access to the hotel or the support you have [been] given under false pretences,” she said.
“We are cracking down on that abuse, and we intend to keep doing so.”
There are reports that asylum seekers can rent legitimate delivery-driver accounts within hours of arriving in the country – skipping employment legality checks.
Uber Eats, Deliveroo, and Just Eat all told Sky News they’re continuing to strengthen the technology they use to remove anyone working illegally.
But a new Border Security Bill, working its way through Parliament, could see companies fined £60,000 for each illegal worker discovered, director disqualifications and potential prison sentences of up to five years.
“I had them all in to see me last week and I told them in no uncertain terms that we take a very tough line on this kind of abuse and they’ve got to change their systems so they can drive it out and off their platforms,” the minister tells me.
Read more:
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The gig economy – so prevalent in every city – creates another incentive for those wanting to risk their lives coming to the UK illegally.
More than 20,000 migrants have crossed the English Channel to the UK in 2025 – a record number at this point of the year.
For some of those who arrive, a bike and a phone provide a way to repay debts to gang masters.
There were eight arrests today in Bristol, one or two taken into custody, but it was 12 hours of hard work by a dozen immigration officers and the support of the police.
As two mopeds are pushed onto a low-loader, you can’t help but feel, despite the best intentions, that at the moment, this is a losing battle.
We see the boat from a distance – the orange of the life jackets reflected in the rising sun.
And as we draw closer, we can make out dozens of people crowded on board as it sets off from the shore, from a beach near Dunkirk.
There is no sign of any police activity on the shore, and there are no police vessels in the water.
Instead, the migrants crammed into an inflatable dinghy are being watched by us, on board a private boat, and the looming figure of the Minck, a French search and rescue ship that soon arrives.
Minck, a French search and rescue ship, shadows the boat
The dinghy meanders. It’s not heading towards Britain but rather hugging the coast.
A few of the passengers wave at us cheerfully, but then the boat starts to head back towards the shore.
Sky’s Adam Parsons at the scene
As it nears a different beach, we see a police vehicle – a dune buggy – heading down to meet it.
Normal practice is for French police officers to slice through the material of any of these small boats that end up back on shore.
Two police officers get out of the buggy and wait. A police helicopter arrives and circles above, performing a tight circle over the heads of the migrants.
The police think they might be about to go back on to the beach; in fact, these passengers know that most of them are staying put.
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
The boat stops a short distance from the shore and four people jump out. As they wade towards the beach, the boat turns and starts to head back out to sea.
We see the two police officers approach these four men and have a brief conversation.
They don’t appear to check the bags they are carrying and, if they do question them about why they left the boat, it is the most cursory of conversations.
In reality, these people probably don’t speak French but they were almost certainly involved in arranging this crossing, which is against the law. But all four walk away, disappearing into the dunes at the back of the beach.
Read more:
Why do so many from around the world try to cross the Channel?
Channel crossings rise by 50% in first six months of 2025
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Why do migrants want to come to the UK?
We follow the boat as it chugs off in the direction of Britain, carrying around 50 people.
The Minck returns to shadowing its progress, but its job is limited to offering help if the boat gets into trouble.
Otherwise, if the engine keeps working, then this flimsy vessel will reach British waters in a few hours’ time.
UK
‘A constant game of cat and mouse’: Inside the police crackdown on illegal moped delivery drivers
The first thing you notice when immigration officers stop a possible illegal moped delivery driver is the speed in which the suspect quickly taps on their mobile.
“We’re in their WhatsApp groups – they’ll be telling thousands now that we’re here… so our cover is blown,” the lead immigration officer tells me.
“It’s like a constant game of cat and mouse.”
Twelve Immigration Enforcement officers, part of the Home Office, are joining colleagues from Avon and Somerset Police in a crackdown on road offences and migrants working illegally.
The West of England and Wales has seen the highest number of arrests over the last year for illegal workers outside of London.
“It is a problem… we’re tackling it,” Murad Mohammed, from Immigration Enforcement, says. He covers all the devolved nations.
“This is just one of the operations going on around the country, every day of the week, every month of the year.”
Murad Mohammed, from Immigration Enforcement, says his team are attempting to tackle the issue
Just outside the Cabot Circus shopping complex, we stop a young Albanian man who arrived in the UK on the back of a truck.
He’s on an expensive and fast-looking e-bike, with a new-looking Just Eat delivery bag.
He says he just uses it for “groceries” – but the officer isn’t buying it. He’s arrested, but then bailed instantly.
We don’t know the specifics of his case, but one officer tells me this suspected offence won’t count against his asylum claim.
Such is the scale of the problem – the backlog, loopholes and the complexity of cases – that trying to keep on top of it feels impossible.
This is one of many raids happening across the UK as part of what the government says is a “blitz” targeting illegal working hotspots.
Angela Eagle, the border security and asylum minister, joins the team for an hour at one of Bristol’s retail parks, scattered with fast food chains and, therefore, delivery bikes.
Border security and asylum minister, Angela Eagle, speaks to Sky News
She says arrests for illegal working are up over the last year by 51% from the year before, to more than 7,000.
“If we find you working, you can lose access to the hotel or the support you have [been] given under false pretences,” she said.
“We are cracking down on that abuse, and we intend to keep doing so.”
There are reports that asylum seekers can rent legitimate delivery-driver accounts within hours of arriving in the country – skipping employment legality checks.
Uber Eats, Deliveroo, and Just Eat all told Sky News they’re continuing to strengthen the technology they use to remove anyone working illegally.
But a new Border Security Bill, working its way through Parliament, could see companies fined £60,000 for each illegal worker discovered, director disqualifications and potential prison sentences of up to five years.
“I had them all in to see me last week and I told them in no uncertain terms that we take a very tough line on this kind of abuse and they’ve got to change their systems so they can drive it out and off their platforms,” the minister tells me.
Read more:
Welfare bill passes final Commons stage after another concession
Ex-Tory chairman defects to Reform
Wealth tax could be coming to the UK – what is it?
The gig economy – so prevalent in every city – creates another incentive for those wanting to risk their lives coming to the UK illegally.
More than 20,000 migrants have crossed the English Channel to the UK in 2025 – a record number at this point of the year.
For some of those who arrive, a bike and a phone provide a way to repay debts to gang masters.
There were eight arrests today in Bristol, one or two taken into custody, but it was 12 hours of hard work by a dozen immigration officers and the support of the police.
As two mopeds are pushed onto a low-loader, you can’t help but feel, despite the best intentions, that at the moment, this is a losing battle.
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