More loan charge help

Where to get help

Anyone who receives an offer under the new loan charge settlement opportunity should have a named HMRC caseworker. The caseworker can explain the process and answer questions about the offer. In line with the HMRC Charter, HMRC should communicate clearly, respond constructively to individual circumstances and make the operational process as straightforward as possible.

They have set out the help that they can give, including for taxpayers who may be vulnerable or need extra support in this GOV.UK guidance. 

A helpline and email address for taxpayers who do not have a named HMRC caseworker is available as set out on GOV.UK.

If you need independent advice about the settlement offer, contact a professional tax adviser for advice based on your circumstances. If you are on a low income or cannot afford paid advice, TaxAid may be able to help. More information about professional and free support is set out below.

Outside of the new settlement opportunity, HMRC's general helpline phone numbers are 0300 322 9494 (loan charge helpline) and 0300 053 4226 (settlement helpline).

HMRC’s main pages of guidance on the loan charge can be found in HMRC’s collection. This includes a briefing on how they will help taxpayers settle or pay the loan charge. Although this covers the position before the McCann review, it includes helpful information about the support HMRC can provide to taxpayers in difficulty.

Professional advisers

If you need help with the loan charge or dealing with HMRC, you could consult a professional tax adviser who may be able to assist you and represent you in discussions with HMRC.

There are some tax and legal consulting firms with specialist loan charge knowledge. A quick look on some contractor forums, where they regularly post updates and information, should provide you with some options. You should carry out your own checks before engaging an adviser, including checking whether they are a member of an appropriate professional body, such as the Law Society or the Chartered Institute of Taxation. 

If you are on a low income, are in financial difficulty, or believe that you are in a vulnerable position and cannot afford to engage a paid advisor you might qualify for help from TaxAid. 

TaxAid may be able to provide free advice and assistance with loan charge issues, including settlement offers made under the new terms.

If you are outside the scope of the new terms or do not want to use them, TaxAid may be able to help you establish what stage you have reached with HMRC and what you still need to do to regularise your position under the original rules. This may include helping you understand the source of the figures HMRC have used to calculate any tax liability. In some cases, estimated assessments or determinations may have been used, and it may be possible to submit late appeals against some of these charges.

Loan recall

As set out on our main page about the McCann review and new settlement terms, we are aware that some people are receiving communications from certain organisation, purporting to now own the loans and suggesting that they may be liable to repay the underlying loans. This may be happening while they are in the process of settling their tax position with HMRC, or even after they have already done so.

This activity is potentially connected to taxpayers needing to write off or release the loans for inheritance tax purposes. This situation previously led to a spike in loan recall activity around 2020/21. Through a quick internet search, it appears the main company involved in the previous loan recall situation was ultimately dissolved, and their director was disqualified. It appears however, that the loans may have been sold on beforehand. 

Whether a loan is legally enforceable is a matter between the individual and the party seeking repayment, rather than for HMRC. However, if you are affected by loan recalls, you may wish to inform your HMRC loan charge caseworker of any developments, as this helps HMRC understand what is happening in practice.

Our articles from May and December 2021 setting out what you need to do to protect yourself from a loan recall can be found in the loan charge news archive below. Forums, such as the one on ContractorUK, may also be helpful, as they can offer an active support network where others in similar circumstances share experiences and offer guidance.

LITRG guidance archive

LITRG have put out many detailed articles on this topic, on our own website and in other publications. We have retained these articles to form an extensive bank of guidance on the loan charge, which you can find here listed below in date order – starting with the most recent.