Connect with us

Published

on

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.

George Osborne
Image:
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’

More from Politics

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
Image:
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 Newton attempted suicided over the stress of the loan charge
Image:
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
Image:
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
Image:
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
Image:
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.

Read more from Sky News:
Race to keep British Steel furnaces running
No evidence of ‘two-tier policing’ in summer riots, MPs say

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

Continue Reading

UK

Police appeal after woman raped in ‘racially aggravated attack’ in West Midlands

Published

on

By

Police appeal after woman raped in 'racially aggravated attack' in West Midlands

Police have said they are investigating a “racially aggravated” rape in the West Midlands.

Officers were called just before 8.30am on Tuesday after a Sikh woman in her 20s reported being attacked by two white men in the area around Tame Road in Oldbury.

The Sikh Federation (UK) said the perpetrators allegedly told the woman during the attack: “You don’t belong in this country, get out.”

One of the men is described as having a shaved head, of heavy build, and was reported to be wearing a dark coloured sweatshirt and gloves.

The second man was reportedly wearing a grey top with a silver zip.

West Midland Police said it is being treated as a “racially aggravated attack” and has appealed for anyone in the area who may have seen the men to contact the force.

Chief Superintendent Kim Madill said: “We are working really hard to identify those responsible, with CCTV, forensic and other enquiries well under way.

“We fully understand the anger and worry that this has caused, and I am speaking to people in the community today to reassure them that we are doing everything we can to identify and arrest those responsible.

“Incidents like this are incredibly rare, but people can expect to see extra patrols in the area.”

Dabinderjit Singh, the lead executive for political engagement at the Sikh Federation (UK), said: “The current racist political environment is driven by popularism and created by politicians playing the anti-immigration card who are unashamedly exploiting those with right-wing and racist views.

“More than 48 hours later we await the public condemnation by politicians on all sides of this brutal racist and sexual attack where a young Sikh woman has been viciously beaten and raped.”

Gurinder Singh Josan, Labour MP for Smethwick, wrote on X: “This is a truly horrific attack and my thoughts are with the victim.”

He added: “The incidence is being treated as a hate crime.

“The police are working extremely sympathetically with the victim at her pace who has been traumatised by the attack.

“We are grateful for all the CCTV and information that has already been forthcoming from the community.”

Continue Reading

UK

Asylum seekers come face-to-face with migrant hotel critics

Published

on

By

Asylum seekers come face-to-face with migrant hotel critics

“It makes me sad. We left when our country had the troubles so we should have in this world… the humanity”.

We’re sitting in a cafe in Tamworth and Noor, 19, is explaining how it feels to know there are people in the town who don’t want him here.

Noor is from Afghanistan and came to the UK on a small boat.

The cafe is close to the asylum hotel where he’s staying.

The group met in a cafe in Tamworth
Image:
The group met in a cafe in Tamworth

He’s agreed to come along with four other men from the hotel to speak to locals about the concern in the town over the Staffordshire hotel being used to house asylum seekers.

There was a peaceful demonstration outside the hotel last month. But last year, a protest here turned ugly. Windows were smashed, petrol bombs thrown, and part of the hotel was set alight.

Among the locals in the cafe is Tom, 25, who reveals he was at both protests.

More on Asylum

Tom (left) has attended anti-migration protests in Tamworth
Image:
Tom (left) has attended anti-migration protests in Tamworth

He says he was persuaded to go by friends and explains to the group why they decided to go.

“They were annoyed, angry, fuming that the government had let them [asylum seekers] live in a hotel,” he says.

Noor, who speaks the best English of the asylum seekers in the group, replies: “What did we do wrong?”

Noor says he is upset by people who do not want him in the UK
Image:
Noor says he is upset by people who do not want him in the UK

“Your government accepts us as asylum seekers,” he continues.

Tom thinks. “I’m more annoyed with the government than you guys,” he tells them.

‘A place to get the golden ticket’

Noor explains to the group how he ended up in the UK. He left Afghanistan four years ago with his family but they were separated on the journey. He doesn’t know where they are.

Heather, a 29-year-old local accountant, speaks up.

Heather says protests outside hotels makes asylum seekers fearful
Image:
Heather says protests outside hotels makes asylum seekers fearful

“When people protest, I’m like, why don’t you protest near the government?” she asks. “Why don’t you take your issue to them rather than being outside the hotel?”

“Those asylum seekers aren’t going to change the policy at all,” she adds. “It’s just going to make them fearful.”

Each of the locals in the cafe has their own take on why some don’t like the asylum seekers living in their town.

“I think they feel like they’re living better than the British people, some of them, and it’s almost like they feel offended,” says Andrew, 47.

“Some people in the UK see how the asylum seekers are coming over to Britain because they see it as a place to get the golden ticket,” he adds.

Please use Chrome browser for a more accessible video player

UK’s unprecedented immigration figures

Heather agrees. She says the NHS is a draw and the UK also has “different border control regulations that might be seen as weaker than in some other countries”.

“You get to stay in a hotel,” she tells the asylum seekers. “You get the free health care. And so I think that’s why they’re a little bit annoyed.”

Noor replies: “One thing I should tell you is that when we cross the English Channel, it means we don’t care about our life. It’s very dangerous.”

Read more:
Protesters on why they oppose asylum hotels
The key numbers driving the immigration debate

Noor and four other asylum seekers joined the meeting
Image:
Noor and four other asylum seekers joined the meeting

Links to the UK

I’m keen to know why they chose to come to Britain. Noor tells the group it’s because he has a relative here and speaks the language.

Azim, 22, who is also from Afghanistan, says he came here because people in the UK “have respect to Islam”.

He also has a family member here.

Azim says people in the UK are respectful of Islam
Image:
Azim says people in the UK are respectful of Islam

I ask them if they could have claimed asylum in France, but Noor says his “only hope was England”.

He says it’s “better for education” here. All the men agree it’s seen as the better place to come.

The conversation moves to the protests this summer which began in Epping, Essex, after an asylum seeker there was charged with sexually assaulting a schoolgirl – an offence he has now been convicted of.

Please use Chrome browser for a more accessible video player

In full: The Immigration Debate

Noor believes British people have a right to be angry about that. He tells the group he believes that asylum seekers who commit crimes “should get back to their country”.

“We also [do] not support them,” he says.

Over the course of the meeting, the mood becomes more relaxed. People with different views find some common ground.

Please use Chrome browser for a more accessible video player

Immigration Debate audience have their say

Noor tells the group that if things improve in Afghanistan he would like to go back there one day.

If not, he hopes he’ll stay in the UK and earn enough to repay in taxes the bill for the hotel he’s staying in now.

It has been a frank exchange. Some in this town will never want asylum seekers here and people like Noor and Azim know it.

But they were placed here by the Home Office and can only wait until their asylum claims are processed.

Continue Reading

UK

‘They’re in conditions you can’t even imagine’: Son of UK couple held in Iran renews plea for their release

Published

on

By

'They're in conditions you can't even imagine': Son of UK couple held in Iran renews plea for their release

“Mum is teaching yoga and English to her cellmates in Iranian prison.”

It’s now over eight months since British couple Lindsay and Craig Foreman were detained in Iran.

Last week, during a long-awaited visit from British ambassador Hugo Shorter, it was confirmed that the pair continue to endure tough conditions with no indication of how – or when – the legal process will proceed.

“They’re both coping, making the best of a bad situation. They’re in conditions you can’t even imagine.”

Lindsay Foreman with son Joe Bennett. Pic: Family handout
Image:
Lindsay Foreman with son Joe Bennett. Pic: Family handout

Speaking to Sky News, their son Joe Bennett explained how the couple have been crammed into cells with more than 50 other prisoners, while suffering constant back pain caused by metal bunk beds.

“The beds are stacked three high. It’s unsanitary. It’s hot. There are often power outages and they’re in 50-degree heat.”

Craig and Lindsay Foreman. Pic: Family handout
Image:
Craig and Lindsay Foreman. Pic: Family handout

Lindsay and Craig, both 52, were arrested in early January in Iran, as they crossed the country on motorbikes as part of an around-the-world adventure. The couple had left Spain just a few weeks earlier and were aiming to drive all the way to Australia.

They were charged with espionage and have been transferred to various prisons around Iran, with little information provided to British diplomatic staff about their whereabouts.

Joe and the rest of the family have only managed to speak to their parents once on the phone. “In a brief conversation that I had with my mum, we managed to share a laugh and a lot of tears as well. But it’s a test of time, how long they can keep this up for.”

Pic: Family handout
Image:
Pic: Family handout

The UK ambassador’s meeting with Craig was the first in over four months, and despite suffering from untreated dental pain, he quipped about becoming a “reluctant Arsenal supporter” while watching football on television with other prisoners.

The couple were previously held together in a facility in the Iranian city of Kerman but have been moved to separate prisons in the capital, Tehran. Family members are calling on the Iranians to move Lindsay into the same facility where Craig is being detained.

Pic: Family handout
Image:
Pic: Family handout

Their son acknowledged in his interview with Sky News that he was frustrated with his parents when they were arrested in January. Family members had urged them not to travel through the country.

“I had that natural reaction that some of the public do – why did they go? It’s idiotic, you’re going against the advice, and it serves them right. That’s fair enough when you don’t know them [but] just picture your parents having a bit of a sense of adventure… it’s a different story.”

The Foreign, Commonwealth and Development Office says it is “deeply concerned” about the couple, adding, “we continue to raise this case directly with the Iranian authorities”.

Members of the Foreman family are urging the British government and the new foreign secretary, Yvette Cooper, to take direct action to improve harsh prison conditions and urgently organise for Lindsay and Craig’s release.

“I need them home, you know, and I need them home as soon as possible. We need them, the family miss them dearly – so we’re going to do everything we can to make that possible.”

Continue Reading

Trending