Thousands face crippling tax demands from HMRC


Thousands face crippling tax demands from HMRC

HMRC is imposing devastating tax demands on tens of thousands of people nationwide for unpaid taxes that their employers failed to pay.

The amounts were astounding, and the psychological and financial toll was intolerable.
In reality, a few of these businesses were running tax evasion operations that paid people loans rather than salaries.

Employees noticed deductions on their paystubs, but the promoters kept the money for themselves. Since these were loans, the businesses neglected to pay the required national insurance and taxes.

Gradually, HMRC and the Treasury realized how much tax income was missing and started pursuing recovery – not from the businesses, but from the individuals.

These programs were considered to be covert compensation, and former chancellor George Osborne introduced the Loan Charge in his 2016 budget. Parliament approved a law requiring people to pay taxes that their employers were supposed to pay.

This usually had an impact on employees of the agency, such as nurses, supply teachers, and council members. Many of them had little choice but to accept jobs from these businesses and were unaware that their compensation would come from loans. They were frequently mis-sold.