A second person facing high debts related to a controversial new piece of tax legislation has taken his own life, a group of MPs reported on Friday.
The individual, whose family asked not be named, had become increasingly desperate at the large bill he faced due to past use of loan based tax avoidance schemes, the MPs said.
The so-called “disguised remuneration” schemes were used by tens of thousands of contractors from the late 1990s including locum doctors, IT contractors, oil and gas workers and social workers, who often entered them on advice from accountants and recruitment agencies.
But the introduction of a new law means that from April, past scheme users face being taxed on any loans they received from up to 20 years ago, in a single tax year.
Many of those affected say they do not have the money to pay the loan charge and are being pushed towards bankruptcy.
News of the death comes days after Mel Stride, financial secretary, refused to attend an evidence session on the loan charge, and a promised review into the impact of the legislation was watered down.
Last week, MPs heard testimony from the family of another man who took his own life because of debts related to the loan charge.
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On the back of the latest tragedy, a cross-party group of MPs has written an open letter to Theresa May asking her to personally intervene on the policy.
“The suicide risk among people facing the loan charge is high and the evidence sent to our loan charge inquiry shows it is serious and widespread, ” wrote members of the Loan Charge all-party parliamentary group (APPG), which consists of 82 MPs.
“This is unprecedented, yet the clear and known risk to people has so far been callously ignored by the Treasury and HM Revenue & Customs.”
Ross Thompson, the Conservative vice-chair of the APPG, added: “I urge the prime minister, now she knows the tragic reality of what this policy is doing, to announce an immediate delay to the loan charge and the settlement process. The loan charge is going to be a disaster for many families and something that will cause a mental health crisis for many if the government does not now listen and act.”
He also repeated calls made on Wednesday for an independent inquiry.
HMRC said it would be inappropriate for it to comment on the suicide. The tax authority has previously said it would consider bankruptcy as a last resort for individuals facing the loan charge and it would be flexible with those experiencing hardship as a result of the policy.
The government and HMRC have come under increasing pressure over the loan charge in recent months.
The Loan Charge Action Group, a campaign group, offers a support service for people struggling with debts related to the loan charge. Text: ‘LCAG HELP’ to 81025 and a member of its team will call back.
People affected can also contact the Samaritans on 116 123 or www.samaritans.org.
