I have today sent this to my local MP:
Dear Mr Fitzpatrick
I'd like to address a concern with my MP regarding the proposed 2019 Loan Charge.
I'm not sure how aware Mr Fitzpatrick is on this rule coming in effect in April 2019.
Many contractors had joined what they thought were legitimate umbrella companies that offered to provide us the best take home pay.
They received advice and guidance from them that everything was compliant from a tax prospective and within the law.
It is estimated that around 50,000 plus contractors/freelancers are now affected by the loan charge. Many of these are doctors, nurses, teacher, IT and Finance contractors. As you can probably gather, many of these people are not high earners.
For example a teacher earning £40,000 per annum would have received about £30,000 in loans a year. So someone doing this for 5 years will now be forced to pay back £30,000+ to HMRC. You can probably understand what receiving a tax demand like this would do to somebody that had a family to look after, little or no savings and other financial commitments. This is something that could potentially be pushing many people over the edge.
The Loan Charge was approved in the Finance Bill 2017 without any or very little discussion in Parliament. It was decided that the new rules would be retrospective. It is the retrospective part of the legislation which I think is wrong. Many users innocently and unknowingly entered into these arrangements and they are now going to face personal and family financial ruin and potentially others may go as far as taking their own lives.
As my local MP I am asking for Jim to please do everything in his power to address this in Parliament.
A private action group (https://www.hmrcloancharge.info/) has been set up to help people that are affected but I think the government needs to do more and look at the disastrous effect this will have on many people and their families.
I am also aware of the early day motion that has been set up by Stephen Lloyd MP. So far it has 79 signatures including Jim's.
https://www.parliament.uk/edm/2017-19/1239[/B]
Dear Mr Fitzpatrick
I'd like to address a concern with my MP regarding the proposed 2019 Loan Charge.
I'm not sure how aware Mr Fitzpatrick is on this rule coming in effect in April 2019.
Many contractors had joined what they thought were legitimate umbrella companies that offered to provide us the best take home pay.
They received advice and guidance from them that everything was compliant from a tax prospective and within the law.
It is estimated that around 50,000 plus contractors/freelancers are now affected by the loan charge. Many of these are doctors, nurses, teacher, IT and Finance contractors. As you can probably gather, many of these people are not high earners.
For example a teacher earning £40,000 per annum would have received about £30,000 in loans a year. So someone doing this for 5 years will now be forced to pay back £30,000+ to HMRC. You can probably understand what receiving a tax demand like this would do to somebody that had a family to look after, little or no savings and other financial commitments. This is something that could potentially be pushing many people over the edge.
The Loan Charge was approved in the Finance Bill 2017 without any or very little discussion in Parliament. It was decided that the new rules would be retrospective. It is the retrospective part of the legislation which I think is wrong. Many users innocently and unknowingly entered into these arrangements and they are now going to face personal and family financial ruin and potentially others may go as far as taking their own lives.
As my local MP I am asking for Jim to please do everything in his power to address this in Parliament.
A private action group (https://www.hmrcloancharge.info/) has been set up to help people that are affected but I think the government needs to do more and look at the disastrous effect this will have on many people and their families.
I am also aware of the early day motion that has been set up by Stephen Lloyd MP. So far it has 79 signatures including Jim's.
https://www.parliament.uk/edm/2017-19/1239[/B]
Comment