Finance (No.3) Bill

Written evidence submitted by 6 Wealden constituents [1] (FB05)


Through the actions of LCAG (Loan Charge Action Group), which I'm sure you are familiar with, professional contractors have been able to form ourselves into groups using our parliamentary constituencies.


This letter represents six individual people from Wealden that like your constituents are facing catastrophic penalties for doing something that has never been proved illegal but are being punished, yes punished for HMRCs inadequacies.


Although we are not in your constituency and in fact have no contact with people affected within your constituency yet - but as a group from Wealden (MP - Ms Nusrat Ghani) we are reaching out to you, as you are members of the House of Commons Public Bill Committee on the Finance Bill. I do not need to tell you the effect of what it will do to those impacted by the ‘Loan Charge’, Accelerated Payment Notices and Follower Notices as I'm sure you have seen the press releases, the Westminster Hall LC debate, EDM 1239 which has been signed by 103 cross-party MPs or been visited by your own constituents and they have told you face to face.  If the ‘Loan Charge’ continues in its present form it will make most of our group members insolvent, lose their home, job and therefore likely to need benefit assistance from DWP at a time this country needs a flexible professional workforce due the prospect of leaving the EU.


With the recent report from the House of Lords Economic Affairs Committee on the 4th December regarding HMRC's powers. Their Lordships noted in relation to the loan charge, APNs and Follower Notices:

· HMRC’s claims to have taken action against promoters of loan schemes are not credible.

· HMRC is prioritising recovery of tax over justice by targeting individuals because they are soft targets

· HMRC claims of having publicised their opposition to DR schemes was insufficient

· Those individuals impacted by the loan charge are not the archetypal "tax avoider" portrayed by HMRC

· Most are less culpable, advised by employers and relying on experts

· It undermines the existing time limit framework and the rule of law to have a charge that is retrospective in effect

· The retrospection, failure to pursue taxpayers proportionately or at all, goes against the principles in the Powers Review from 2005

· Accelerated Payment Notices and Follower Notices. Taxpayers have no right of appeal against a notice, only against the underlying tax liability

· Concerned that penalties for continuing appeals against underlying tax liabilities could undermine access to justice for taxpayers

With the above in mind we respectably ask that the Finance Bill Committee includes the Lords Economic Affairs Committee recommendations/measures in to the Finance Bill, before the ‘Loan Charge’ becomes active in April 2019.

Yours Sincerely

Mike, Trevor, Anna, Al, Sonia and Stephen

Wealden constituents  

December 2018

[1] Mike, Trevor, Anna, Al, Sonia and Stephen - Wealden constituents


Prepared 12th December 2018