A seventh suicide has been linked to a Government tax policy that is being independently reviewed, a group of cross parliamentary MPs have said - as they renewed calls for the policy to be suspended immediately.
On Saturday, the Loan Charge All Party Parliamentary Group (APPG) said via Twitter: "We’ve just been informed of another suicide of someone facing the Loan Charge who took their own life last night. That is seven Loan Charge suicide confirmed to us. This is tragic and is also appalling because it was avoidable.
"Boris Johnson and Sajid Javid, suspend the Loan Charge and Accelerated Payment Notices (APNs)."
Plymouth's MPs say they support the ongoing independent review of the Loan Charge, a tax demand which has been accused of undermining tax certainty, and the Rule of Law by removing the right to a hearing and allegedly being retrospective in nature. And they have now issued responses when asked if they will support calls to suspend the Loan Charge while the review is ongoing.
The review is set to announce its recommendations in mid-November.
Many veterans work as contractors on leaving Armed Forces, and Plymouth Live has heard from Royal Navy servicemen who say the charges and demands have left them facing bankruptcy and are causing them mental distress.
When asked if he supported calls to suspend the Loan Charge, Veterans Minister Johnny Mercer - Conservative for MP Plymouth Moor View - said: "It it's not my policy area - but I support the review. Let's see what happens".
When asked the same question, Labour MP Plymouth Sutton and Devonport, Luke Pollard said: "Ministers are presiding over a crisis that is causing so much pain and misery that people are taking their own lives.
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"I want to see Ministers recognise that their handling of the Loan Charge has been disastrous and to put proper measures in place.
"Everyone should pay a fair share of tax, but this is now more than just about the proper tax due, this is about how Government pushes people into crisis. It needs to change.”
Advice and support for those in need
Talk to someone.
There are useful helplines and websites available now.
Samaritans (116 123) operates a 24-hour service available every day of the year. If you prefer to write down how you’re feeling, or if you’re worried about being overheard on the phone, you can email Samaritans at jo@samaritans.org .
Childline (0800 1111) runs a helpline for children and young people in the UK. Calls are free and the number won’t show up on your phone bill.
PAPYRUS (0800 068 41 41) is a voluntary organisation supporting teenagers and young adults.
Depression Alliance is a charity for people with depression. It doesn’t have a helpline, but offers a wide range of useful resources and links to other relevant information. http://www.depressionalliance.org/
Students Against Depression is a website for students who are depressed, have a low mood or are having suicidal thoughts. Bullying UK is a website for both children and adults affected by bullying. http://studentsagainstdepression.org/
The Sanctuary (0300 003 7029) operates a 24-hour service available every day of the year, for people who are struggling to cope - experiencing depression, anxiety, panic attacks or in crisis.
Andy's Man Club now has four groups across Devon (Plymouth, Newton Abbot, Torbay, Exeter). It provides men with a safe, non-judgemental, confidential place to chat and get stuff off your chest. To gain access during lockdown, any man over 18 can email info@andysmanclub.co.uk.
The HMRC say the charges are a legitimate way of collecting unpaid taxes, that sometimes go back as far as 20 years, from people - often contractors and including doctors and nurses - who used tax avoidance schemes that were recommended and sold by tax advisors and accountants. The schemes typical involved a proportion of earnings being paid as a loan through an off-shore trust in a tax haven.
Loan Charge critics say some people had to use the schemes to get paid, while others say they were pushed into using the schemes because of changes to IR35 tax legislation which meant some contractors were no longer classed as self-employed and, consequently, were left thousands of pounds out of pocket when they could no longer claim legitimate businesses expenses back from their tax allowance.
Earlier this year, Parliament heard that people had taken their own lives after being "unfairly" pursued by HMRC over the Loan Charge, and passed a motion expressing 'deep concern' that the tax demands involved are fundamentally unfair, and undermine the Rule of Law and are damaging people's mental health. To date, more than 200 MPs have signed the motion.
Others claim behavioural psychology 'nudge unit' techniques used by HMRC to encourage people to pay the tax demands - often for tens of thousands of pounds and at repayment rates that would swallow up monthly earnings - are exacerbating the damage the Loan Charge is allegedly causing people's mental health.
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Critics say the charges are retrospective and Her Majesty's Revenue and Customs (HMRC) has been accused of being 'out of control and acting like robber baron' by MP Edd Davey, who chairs who chairs an All Party Parliamentary Group (APPG) that published what it calls a "dossier of evidence" of it "pursuing people aggressively and unreasonably".
Meanwhile, an association that represents thousands of health professionals has claimed tax reforms and the Loan Charge have driven thousands of locum doctors and nurses into tax avoidance schemes – and are creating a staffing and mental health crisis in the NHS.
The Treasury and HMRC have denied the claims, but Chancellor of the Exchequer Sajid Javid has now ordered an independent review of the Loan Charge.
One Loan Charge 'victim' from Devon says he is now on antidepressants and another says 'can't live' with the embarrassment of bankruptcy - after HMRC hired behavioural psychologists to 'intimidate' and 'manipulate' taxpayers, according to a report by the APPG.
Now, after a seventh suicide by someone facing the Loan Charge, the APPG has said 80 MPs have signed an open letter calling for an immediate suspension of the 'draconian' Loan Charge and associated APNS. They say that one of the Loan Charge suicides being investigated as part of the Loan Charge inquiry "has the Loan Charge as the reason for suicide in the individual’s suicide letter."
In August, the daughter of a man who took his life said her father - a consultant engineer in his late sixties - became convinced he was a criminal and would go to prison, because of Loan Charge demands. In November last year, he wrote a 13-page letter to his family explaining that he couldn't resolve his tax affairs and blaming himself.
Advice and support for those in need
Talk to someone.
There are useful helplines and websites available now.
Samaritans (116 123) operates a 24-hour service available every day of the year. If you prefer to write down how you’re feeling, or if you’re worried about being overheard on the phone, you can email Samaritans at jo@samaritans.org .
Childline (0800 1111) runs a helpline for children and young people in the UK. Calls are free and the number won’t show up on your phone bill.
PAPYRUS (0800 068 41 41) is a voluntary organisation supporting teenagers and young adults.
Depression Alliance is a charity for people with depression. It doesn’t have a helpline, but offers a wide range of useful resources and links to other relevant information. http://www.depressionalliance.org/
Students Against Depression is a website for students who are depressed, have a low mood or are having suicidal thoughts. Bullying UK is a website for both children and adults affected by bullying. http://studentsagainstdepression.org/
The Sanctuary (0300 003 7029) operates a 24-hour service available every day of the year, for people who are struggling to cope - experiencing depression, anxiety, panic attacks or in crisis.
Andy's Man Club now has four groups across Devon (Plymouth, Newton Abbot, Torbay, Exeter). It provides men with a safe, non-judgemental, confidential place to chat and get stuff off your chest. To gain access during lockdown, any man over 18 can email info@andysmanclub.co.uk.
In a statement, HM Treasury said: "The review, commissioned by the Chancellor, Sajid Javid, will consider whether the policy is an appropriate way of dealing with disguised remuneration loan schemes used by individuals who entered directly into these schemes to avoid paying tax.
"The disguised remuneration Loan Charge was introduced to tackle contrived schemes where a person’s income is paid as a loan which does not have to be repaid.
"Disguised remuneration loan schemes were used by tens of thousands of people, and concerns have been raised about the use of the Loan Charge as a way of drawing a line under these schemes. The government is clear that disguised remuneration schemes do not work and that their use is unfair to the 99.8 per cent of taxpayers who do not use them.
Financial Secretary to the Treasury Jesse Norman said: “Everyone should pay their fair share of tax. These disguised remuneration schemes are highly contrived attempts to avoid tax, but it is right to consider if the Loan Charge is the appropriate way of tackling them.
“The Government fully appreciates the concerns expressed by individuals, campaigners, and MPs who have raised concerns about the Loan Charge, and the Chancellor has today appointed Sir Amyas Morse, former Comptroller and Auditor General and Chief Executive of the National Audit Office (NAO), to lead an independent review of the policy.
Last week, the APPG said it welcomed a positive first meeting with Sir Amyas Morse. Sir Ed Davey MP and Ruth Cadbury attended the meeting which is one of a series of meetings that Sir Amyas is holding as part of the review.
Sir Ed Davey MP, Chair of the Loan Charge APPG (Liberal Democrat) said: "We were very pleased to meet with Sir Amyas Morse, on behalf of our 169 Parliamentarians and to express our serious concerns about the whole loan charge scandal.
"This is a review we have fought for and so we are keen to assist Sir Amyas and his team.
“We welcome his clear commitment that his review will be independent. We welcome Sir Amyas' commitment to meet with the APPG again, when we can ensure a larger number of Parliamentarians can give evidence on behalf of their constituents.
"I was impressed by his willingness to engage and listen. “Nonetheless, we continue to have concerns about the timescale the Treasury have insisted upon for the review, and strongly believe Sir Amyas should be allowed more time, with the review being accompanied by a suspension of the Loan Charge and APNs.”