It has been reported that some 50,000 people have been affected by HMRC’s loan charge.
A recent report from the BBC highlights the impact that the loan charge is having on people’s mental health. In the report, a contractor says that he was paid as a contractor and used a company to manage his tax affairs who assured him that he was able to take 85% of his earnings without paying tax. He was paid a small amount of salary and the rest via a ‘loan’ which was never paid back.
HMRC are now pursuing this individual for £10,000 which should have been paid as income tax.
The contractor in question has contemplated suicide and is now considering bankruptcy even though he has not discussed this with his wife.
Debt is very easy to get into but is extremely difficult to get out of and we see numerous instances where problem debts adversely impact on someone’s mental health.
Our top tip for anyone in this situation is to talk about it whether it is to your partner, a debt charity such as stepchange, or an insolvency practitioner.
For more advice and information on personal or corporate debt, please contact Stella Flemmings on 01377 257788 and she will make you an appointment with one of our insolvency professionals at our offices in East Yorkshire, Lincolnshire or North Yorkshire. Meetings can be held in any of our offices whilst observing the socially distancing guidelines or virtually.