Liz Truss commits to look into “appalling” reports of loan charge suicides

Ms Truss also criticised the “very poor” way the whole situation surrounding the controversial tax policy has been handled.

The commitment was made at a ‘meet Liz’ meeting in Purley hosted by Croydon Conservatives, when Ms Truss was asked if she would act before more people take their own lives while facing the loan charge.

Earlier this year, it was revealed by Financial Secretary to the Treasury Lucy Frazer that HMRC has referred nine cases to the Independent Office for Police Conduct where a taxpayer has taken their own life after they had used a “disguised remuneration” scheme.

In a letter seen by The Yorkshire Post, Ms Frazer said she was deeply saddened to hear about these cases and is working closely with HMRC to improve support that is given to people in difficult circumstances.

Eight investigations have concluded there was no evidence of misconduct by any HMRC officer and one investigation is ongoing, the letter from Ms Frazer says.

In her comments at the meeting, Ms Truss also committed to review the ‘IR35’ off-payroll legislation, something which critics claim has led directly to many contractors being mis-sold arrangements now subject to the loan charge.

At the Purley meeting a local Conservative member quizzed Ms Truss about the loan charge: "This unfair law overrides basic taxpayer protections and is thoroughly un-Conservative. Will you commit to a genuinely independent review and to resolve this issue before more people take their own lives?”

Liz Truss replied: “It is appalling to hear about that and the way the whole situation has been handled has been very poor in my view and we’ll look at what we can do on that specific issue."

Ms Truss said that, if she became Prime Minister, "we’ll also make sure as part of our tax review we’re looking at IR35 and the impact that has had because again, the people who are self-employed do not get the same benefits as people who are on Pay As You Earn.

"So we should be doing what we can to help those people but I’ll certainly look at that and it’s very very tragic, I think, that this has happened”.

The Loan Charge Action Group is calling on the next Prime Minister to commission an independent review not influenced by the Treasury and HMRC into the loan charge and find a "fair resolution" for all those impacted.

Spokesperson for the Loan Charge Action Group, Steve Packham, said: "We are very pleased that Liz Truss has made a public commitment to look into the loan charge and we urge her to do this as soon as possible, if she wins the Conservative leadership contest and becomes Prime Minister.

"It’s time for a proper independent review of the whole thing and most importantly, for a fair resolution to end the nightmare for thousands of families.

“We urge Conservative MPs to back the Loan Charge Pledge and to call on the next Prime Minister to review and resolve the Loan Charge Scandal before more lives are lost“

A Government spokesman declined to comment in response to Ms Truss' comments about the loan charge.

Last month, Baroness Kramer, Vice-Chair of the Loan Charge and Taxpayer Fairness All Party Parliamentary Group, said: “The next Prime Minister and Chancellor must stop ignoring the Loan Charge Scandal, a clear injustice that has tragically led to suicides.

"The current situation is that many people simply cannot pay the demands HMRC is making of them and without a fair resolution, such as the one proposed by tax sector professionals and backed by the APPG, there is a risk of more lives being ruined."

The loan charge was introduced by the Government to ensure those who used what it described as "disguised remuneration tax avoidance schemes" paid their fair share of income tax and national insurance contributions.

A Government spokesperson said last month in response to concerns raised about the loan charge by MPs: “HMRC take concerns about the wellbeing of all taxpayers very seriously, and recognises that large tax liabilities can add significant pressures for some taxpayers.

“For taxpayers who may need specialised help, HMRC advisers encourage them to contact organisations such as Samaritans or Mind. Samaritans are available to provide emotional support 24 hours a day, seven days a week. HMRC continues to consider what additional support could be provided to taxpayers who need extra help.”