MPs and contractors urge UK government to U-turn on 'manifestly unfair' Loan Charge settlement terms | Computer Weekly

"The UK government stands accused of "betraying" thousands of contractors who have settled their Loan Charge liabilities in full by agreeing to cut the amount still owed by those who are yet to do so by "at least 50%". The government committed to wiping thousands of pounds off the outstanding liabilities of the 32,000 people who remain in-scope of the Loan Charge in November 2025, and are yet to reach a settlement agreement with HMRC over the matter."

"This commitment was in response to the publication of the latest independent review into the Loan Charge in November 2025, authored by former HM Revenue and Customs (HMRC) assistant director Ray McCann. As previously detailed by Computer Weekly, the review was commissioned by HM Treasury to resolve the fallout from the Loan Charge policy, which has seen tens of thousands of contractors saddled with life-changing tax bills."

"According to the government, in its response to the McCann review, individuals that choose to engage with its revised approach to settlements could see a reduction of up to £70,000 in their outstanding Loan Charge liabilities. "Most individuals could see reductions of at least 50% in their outstanding loan charge liabilities and an estimated 30% of individuals could be able to settle without paying anything," the government response stated."

Government committed to reducing outstanding Loan Charge liabilities for 32,000 people still in scope, aiming to wipe thousands of pounds for those who have not yet reached settlement with HMRC by November 2025. The move followed an independent review led by former HMRC assistant director Ray McCann, commissioned by HM Treasury to address the Loan Charge fallout. Individuals who engage with revised settlement arrangements could see reductions up to £70,000, with most potentially getting at least 50% cuts and about 30% possibly settling without payment. Around 12,000 contractors have already settled and will generally be excluded, prompting cross-party criticism as unfair.

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