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
A woman who is under police investigation after assisting the suicide of her husband at Dignitas in Switzerland has told Sky News she has no regrets.
Louise Shackleton has spoken publicly for the first time since her husband’s death in December, as parliament prepares to vote again on legislation to introduce assisted dying in England and Wales.
Mrs Shackleton surrendered herself to police after returning from Switzerland having seen her husband Anthony die. He had been suffering with motor neurone disease for six years.
“I have committed a crime, which I have admitted to, of assisting him by simply pushing him on to a plane and being with him, which I don’t regret for one moment. He was my husband and I loved him,” she said.
“We talked at length over two years about this. What he said to me on many occasions is ‘look at my options, look at what my options are. I can either go there and I can die peacefully, with grace, without pain, without suffering or I could be laid in a bed not being able to move, not even being able to look at anything unless you move my head’.
“He didn’t have options. What he wanted was nothing more than a good death.”
The law in the UK prohibits people from assisting in the suicide of others, but prosecutions have been rare.
Louise Shackleton has spoken publicly for the first time since her husband Anthony’s death
In a statement, a North Yorkshire Police spokesman told Sky News: “The investigation is ongoing. There is nothing further to add at this stage.”
The next vote on the assisted dying bill for England and Wales has been delayed by three weeks to give MPs time to consider amendments.
The legislation would permit a person who is terminally ill with less than six months to live to legally end their life after approval by two doctors and an expert panel.
‘He was at total peace with his decision’
Mrs Shackleton says she saw her husband “physically and mentally” relax once on the flight to Switzerland.
She said: “We had the most wonderful four days.
“He was laughing. He was at total peace with his decision.
“It was in those four days that I realised that he wanted the peaceful death more than he wanted to suffer and stay with me, which was hard, but that’s how resolute he was in having this peace.
“I was his wife, we’d been together 25 years, we’d known each other since we were 18. I couldn’t do anything else but help him.”
‘We need to safeguard people’
She said the hardest part of the journey came after her husband’s death.
“There was this panic and this fear that I was leaving him,” she said. “That was a horrific experience.
“If the law had changed in this country, I would have been with family, family would have been with us, family would’ve been with him. But as it was, that couldn’t happen.”
Opponents to the assisted dying bill have raised concerns about the safety of vulnerable people and the risk of coercion and a change in attitudes toward the elderly, seriously ill and disabled.
They say improvements to palliative care should be a priority.
“I think that we need to safeguard people,” said Mrs Shackleton. “I think that sometimes we need to suffer other people’s choices, and when I mean suffer I mean we have to acknowledge that whilst we’re not comfortable with those, that we need to respect other people, other people wishes.”
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Anthony, who died aged 59, was a furniture restorer who had earned worldwide recognition for making rocking horses.
“I think the measure of the man is that nobody has ever said a bad word about him in the whole of his life because he was just so caring and giving,” his widow said.
‘This is about a dying person’s choice’
She said she had chosen to speak publicly because of a promise she had made him.
“I felt that my husband’s journey shouldn’t be in vain. We discussed this on our last day and my husband made me promise to tell his story.
“He told me to fight and the simple thing that I’m fighting for is people to have the choice.
“This is about a dying person’s choice to either follow their journey through with disease or to die peacefully when they want to, on their terms, and have a good death. It’s that simple.”
UK
Feminists ‘feel braver about speaking out’ after gender ruling – but critics say it ‘stokes culture war’
A former Labour MP who quit the party over Sir Keir Starmer’s leadership has welcomed the landmark Supreme Court ruling on the definition of a woman as a “victory for feminists”.
Rosie Duffield, now the independent MP for Canterbury, said the judgment helped resolve the “lack of clarity” that has existed in the politics around the issue “for years”.
She was speaking to Ali Fortescue on the Politics Hub on the same day the UK’s highest court delivered its verdict on one of the most contentious debates in politics.
Politics latest: MPs respond to Supreme Court ruling on gender
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How do you define a woman in law?
The judges were asked to rule on how “sex” is defined in the 2010 Equality Act – whether that means biological sex or “certificated” sex, as legally defined by the 2004 Gender Recognition Act.
Their unanimous decision was that the definition of a “woman” and “sex” in the Equality Act 2010 refers to “a biological woman and biological sex”.
Asked what she made about comments by fellow independent MP John McDonnell – who said the court “failed to hear the voice of a single trans person” and that the decision “lacked humanity and fairness” as a result, she said: “This ruling doesn’t affect trans people in the slightest.
“It’s about women’s rights – women’s rights to single sex spaces, women’s rights, not to be discriminated against.
“It literally doesn’t change a single thing for trans rights and that lack of understanding from a senior politician about the law is a bit worrying, actually.”
However, Maggie Chapman, a Scottish Green MSP, disagreed with Ms Duffield and said she was “concerned” about the impact the ruling would have on trans people “and for the services and facilities they have been using and have had access to for decades now”.
Susan Smith and Marion Calder, directors of For Women Scotland celebrate after the ruling. Pic: Reuters
“One of the grave concerns that we have with this ruling is that it will embolden people to challenge trans people who have every right to access services,” she said.
“We know that over the last few years… their [trans people’s] lives have become increasingly difficult, they have been blocked from accessing services they need.”
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‘Today’s ruling only stokes the culture war further’
Delivering the ruling at the London court on Wednesday, Lord Hodge said: “But we counsel against reading this judgment as a triumph of one or more groups in our society at the expense of another. It is not.
Campaigners celebrate outside the Supreme Court. Pic: PA
“The Equality Act 2010 gives transgender people protection, not only against discrimination through the protected characteristic of gender reassignment, but also against direct discrimination, indirect discrimination and harassment in substance in their acquired gender.
“This is the application of the principle of discrimination by association. Those statutory protections are available to transgender people, whether or not they possess a gender recognition certificate.”
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Asked whether she believed the judgment could “draw a line” under the culture war, Ms Chapman told Fortescue: “Today’s judgment only stokes that culture war further.”
And she said that while Lord Hodge was correct to say there were protections in law for trans people in the 2020 Equality Act, the judgment “doesn’t prevent things happening”.
“It may offer protections once bad things have happened, once harassment, once discrimination, once bigotry, once assaults have happened,” she said.
She also warned some groups “aren’t going to be satisfied with today’s ruling”.
“We know that there are individuals and there are groups who actually want to roll back even further – they want to get rid of the Gender Recognition Act from 2004,” she said.
“I think today’s ruling just emboldens those views.”
Arsenal have reached the semi-finals of the Champions League after a dramatic victory over holders Real Madrid in Spain.
The north London side, who became the first English team to win twice at the Bernabeu following their triumph there 19 years ago, will face Paris Saint-Germain in the last four after the French side beat Aston Villa on Tuesday.
It is the third time the Gunners have made it through to the semis of the top club football tournament in Europe, and the first since 2009.
Arsenal went into the second leg of their quarter-final clash on Wednesday with a 3-0 lead.
Backed by a raucous home crowd, Madrid tried to get off to a strong start and Kylian Mbappe scored after two minutes. However, the goal was disallowed for a clear offside.
Arsenal had the chance to go ahead in the 13th minute but winger Bukayo Saka missed a penalty.
The Spanish hosts were awarded a penalty of their own about 10 minutes later when Mbappe stumbled under pressure from Declan Rice in the box – but the decision was overturned by VAR.
Saka atoned for his tepid penalty as he chipped the ball past Madrid’s keeper Thibaut Courtois when put through on goal by auxiliary striker Mikel Merino in the 65th minute.
But Arsenal were pegged back just two minutes later as Vinicius Junior caught William Saliba dawdling on the ball and fired Real Madrid level.
Arsenal’s resolute defending kept the home side at bay until Gabriel Martinelli made a late break through the home side’s defence to put his side 2-1 ahead three minutes into injury time, as the Gunners made it 5-1 on aggregate.
(L-R) Arsenal’s Declan Rice and Mikel Merino celebrate after the defeat against Real Madrid. Pic: AP
‘We knew we were going to win’, says Rice
Arsenal midfielder Declan Rice has insisted his team are intent on winning the Champions League after their victory in Madrid.
Speaking to TNT Sport, Rice, who was named player of the match, said: “It’s such a special night, a historic one for the club. We have the objective of playing the best and winning the competition.
“We had so much belief and confidence from that first leg and came here to win the game. We knew we were going to suffer but we knew we were going to win. We had it in our minds, then we did it [in] real life. What a night.
“I knew when I signed, this club was on an upward trajectory. It’s been tough in the Premier League but in this competition we’ve done amazingly well.
“It’s PSG next, who are an amazing team.”
‘We have to be very proud of ourselves’, says Arteta
Arsenal boss Mikel Arteta told TNT Sport: “One of the best nights in my football career.
“We played against a team with the biggest history.
“To be able to win the tie in the manner we have done, I think we have to be very proud of ourselves.”
He added: “The history we have in this competition is so short. The third time in our history of what we have just done and we have to build on that. All this experience is going to help us, for sure.”
Real Madrid were seeking their third Champions League title in four seasons.
Mbappe twisted ankle
Their forward Mbappe twisted his right ankle during the game and was jeered by part of the crowd when his substitution was announced after a lacklustre performance.
The French star, who is still looking for his first Champions League title, was replaced by Brahim Diaz in the 75th minute following his injury. He was able to walk off the pitch by himself, but was limping slightly.
The other semi-final will be between Barcelona and Inter Milan.
The first legs are set to be played on 29 and 30 April, with the second legs on 6 and 7 May.
The final will be on 31 May.
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