I believe many people simply followed the advice they were given.
Some had no choice because their employers, including many public sector employers, insisted on trust-loan arrangements as a condition of employment.
After the Treasury crackdown announced in 2016, they were stunned to suddenly get a tax demand for money they had no idea they owed.
FTAdviser recently reported that Paul Hornby, managing director of accountancy firm JF Hornby, said HMRC’s action over the charge had left low-paid workers lumped with six-figure tax bills.
“Nurses, teachers and public sector workers, along with many people who worked as freelancers, are finding themselves in unimaginable situations,” he said.
“It is affecting people who should be looking ahead to retirement, but instead are wondering how they will ever manage to pay back what the taxman claims is his.”
The previous week the Loan Charge Action Group, which was set up to help victims of the fee, claimed that at least five more contractors – on top of six existing suicides known to have been caused by the charge – are on the verge of killing themselves.
Two weeks ago, chancellor Sajid Javid commissioned an independent review of the charge because of “concerns that have been raised about the policy”.
It is a policy that has hounded people to their death and must be rescinded, in my view.
The daughter of one victim told the BBC earlier this year that the prime minister should make dealing with the tragedies a top priority.
When asked why, she said: “Because he can save lives. By halting it he can save lives.”
That is a powerful call for action, but while we wait for the government’s independent enquiry to publish recommendations promised by mid-November, thousands will be left in serious financial turmoil and may be embracing dark thoughts.
If any of your clients are victims, I urge you to offer support and help.
Simon Read is a freelance journalist
