APPG commences inquiry into the 2019 Loan Charge

The new All-Party Parliamentary Group on the Loan Charge has commenced a formal inquiry into the 2019 Loan Charge and are inviting evidence from professionals and from those facing the Loan Charge, as well as examining Treasury and HMRC documentation.

The inquiry into the 2019 Loan Charge will look at the Loan Charge legislation, the background and its introduction, and how people came to be using loan-based payroll arrangements in such numbers.

Since accepting an amendment to the Finance Bill, the Government are conducting a review of the Loan Charge and must report to the House of Commons by 30th March 2019. The APPG inquiry report will form part of the evidence of that review and the Government has said they will accept it as such.

The All-Party Parliamentary Loan Charge Group is calling for written evidence as part of its inquiry. The APPG welcomes submissions of evidence from individuals, professionals and organisations with knowledge or experience of the Loan Charge, with the deadline being midnight on Monday, 25th February 2019. Further details of how to do so are on the APPG website

The responses received will inform the final report that the APPG will publish in March 2019. This report will include recommendations to the Government. A formal response to the report will be requested from Treasury Ministers.

The APPG Inquiry will look at the legal position at the time and what powers HMRC had to close down or tax such arrangements. It will look at whether the Loan Charge is justified by court cases and whether, as has been suggested, it overrides legislation and statutory taxpayer protections.

It will also examine the role that promoters’ fees paid in the arrangements, as well as tax not paid by organisations using contractors/freelancers and whether they are being taken into account in calculations being levied on individuals.

The inquiry will be especially focused on the reality of the situation people now find themselves in: the level of liabilities and the impact the Loan Charge will have on individuals, their financial situations, their lives and families and career.

It will examine HMRC’s record when dealing with affected taxpayers, the timeframe in which people have been informed about their liabilities and in particular the arrangements being proposed for repayment and whether they are realistic and affordable for those facing them.

It will also examine HMRC’s claim to pursue promoters of the arrangements, the users of which are now facing the Loan Charge.

The inquiry will consist of examining written evidence and also oral evidence sessions. The three identified groups that the inquiry will invite to give oral evidence are as follows:

  • Sector professionals
  • Individuals facing the Loan Charge
  • HMRC and HM Treasury

The first oral evidence session, with sector professionals, is to take place on Wednesday 13th February.

Commenting, Sir Ed Davey MP, Chair of the Loan Charge APPG said:

“The All-Party Loan Charge Group is pleased to launch our formal inquiry into the Loan Charge and the impact it will have on people facing it. The inquiry will be the first to focus solely on the Loan Charge and to report before it comes in.

“There has been considerable concern raised about the Loan Charge by MPs and peers. The House of Lords Economic Affairs Committee Report highlighted many concerns and we will be looking at their conclusions and evidence as well as the questions asked by members of the Treasury Select Committee.

“The APPG Inquiry is an important and timely opportunity for proper scrutiny of the Loan Charge before it comes in, and with tens of thousands of people facing life-changing bills, it is vital that the Loan Charge is properly examined before it comes into effect on 5th April.”

Commenting, Ruth Cadbury MP, Vice-Chair of the Loan Charge APPG said:

“Constituents from up and down the country have been contacting their MPs about the impact that the Loan Charge, as it is currently devised, will have on them and their families when it comes into effect in just two months’ time.

“There are many question marks about the way the Loan Charge has been implemented and the justification for doing so, as well as the obvious concern for the welfare of many people facing the Loan Charge and huge bills for past tax years that they were not expecting. The Loan Charge APPG looks forward to receiving evidence from all those with an interest in this issue and we will study the Loan Charge in depth, its introduction, its justification and above all the actual effect it will have on individuals, sections of the economy and some key groups of public sector workers.”




Notes to Editors

  1. The All-Party Parliamentary Loan Charge Group (Loan Charge APPG) has been created to bring together parliamentarians of all parties from both Houses of Parliament who have concerns about the nature and impact of the ‘2019 Loan Charge’ which will come in to force on the 5th of April 2019 and also concerns about the wider context of fairness of tax legislation and HMRC’s conduct in enforcing it. See and Twitter @LoanChargeAPPG. The Loan Charge APPG is an officially registered Parliamentary Group, as described on the UK Parliament website


  1. The Officers of the Loan Charge APPG are as follows:
  • Rt Hon. Sir Ed Davey MP, Chair, MP for Kingston and Surbiton (Liberal Democrat)
  • Ruth Cadbury MP, Vice-Chair, MP for Brentford and Isleworth (Labour)
  • Ross Thomson MP, Vice Chair, MP for Aberdeen South, (Conservative)
  • Hon. Baroness Kramer, Vice-Chair, (Liberal Democrat)
  • Liz Twist MP, Vice-Chair, MP for Blaydon (Labour)