Mainstream and tax media have recently reported on the tragedy of the 10th suicide relating to the imposition of the loan charge. 

At it’s most basic, this charge was an unforeseen consequence of many contractors using loan schemes to circumvent (whether wittingly or unwittingly) PAYE legislation which meant that the total liability for any outstanding loans taken out since 9 December 2010 were chargeable at a 45% rate as at 5 April 2019.

The charge could be spread across three tax years and HMRC advises that they will consider time to pay arrangements.