The Loan Charge is a retrospective tax charge issued to tens of thousands of temporary and contract workers who often unknowingly operated via tax avoidance schemes.

Introduced six years ago, it was designed to tackle tax avoidance schemes but many of those were mis-sold by lawyers or accountants. 

It is believed by many that the promoters of the scheme should be liable, and not those who didn’t know they were doing anything untoward.

Julia Kermode, founder of the body that champions and supports independent workers IWORK, said it was “tragic” and “abhorrent” that HM Revenue & Customs continues to “hound thousands of other temps, freelancers and contractors”.

“HMRC is holding the individual responsible when they should be targeting the agencies,” she said. “Agency legislation would see agencies liable for tax avoidance.”

Kermode added: “The Loan Charge is a conscious decision from HMRC to circumvent the regulations it created,” and aggressively chase “tens of thousands of people for sums that often amount to hundreds of thousands of pounds”.

“Resolution must be agreed to put an end to losing lives because of this,” she said.

A 10th suicide linked to the loan charge was confirmed earlier this month in correspondence between HMRC CEO Jim Harra and the Treasury Select Committee.

The founder of payroll auditor PayePass, Fred Dures, also commented on the death, saying that those involved in “enforcing the loan charge should be ashamed”.

“Worse still, these schemes still exist,” Dures continued. “The main players and serial offenders are well known in the sector and to HMRC. The crooks behind tax avoidance schemes have become extraordinarily wealthy by abusing the people who trusted them.”

Dures said the government must regulate the umbrella industry, but despite promising to they haven’t yet.

“Until regulation arrives, the risk of tax avoidance schemes posing as umbrella companies will remain,” he said.

HMRC analysis estimates that 50,000 people in the UK have used a loan scheme, and that the loan charge policy is expected to “protect” £3.2bn.

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