← Back to imported archive search

The Loan Charge and Bankruptcy

Source: WhatDoTheyKnow
Authority: HM Revenue and Customs
Status: The request was partially successful .
Imported path: /opt/loancharge/imports/wdtk/requests/the_loan_charge_and_bankruptcy

Open original request on WhatDoTheyKnow

Imported text

SOURCE: WhatDoTheyKnow
SOURCE_URL: https://www.whatdotheyknow.com/request/the_loan_charge_and_bankruptcy
TITLE: The Loan Charge and Bankruptcy
AUTHORITY: HM Revenue and Customs
AUTHORITY_URL: https://www.whatdotheyknow.com/body/hmrc
STATUS: The request was
partially successful
.
REQUEST_SLUG: the_loan_charge_and_bankruptcy
CAPTURED_AT: 2026-05-19T07:15:42+00:00
PROVENANCE: {"first_seen_at": "2026-05-18T12:52:17", "first_seen_page": "1", "first_query_term": "\"Loan Charge\"", "first_date_after": "2019/01/01", "first_date_before": "2020/01/01", "matched_query_terms": "\"Loan Charge\" | \"disguised remuneration\"", "matched_date_ranges": "2019/01/01 to 2020/01/01", "first_search_url_template": "https://www.whatdotheyknow.com/search/%22Loan%20Charge%22/requests?commit=Filter&query=%22Loan+Charge%22&request_date_after=2019%2F01%2F01&request_date_before=2020%2F01%2F01&request_variety%5B%5D=sent&request_variety%5B%5D=response&request_variety%5B%5D=comment&sortby=&utf8=%E2%9C%93&page="}

ATTACHMENTS:
- FOI2019_00966_Philip_Harris.pdf | https://www.whatdotheyknow.com/request/the_loan_charge_and_bankruptcy/response/1368067/attach/2/FOI2019%2000966%20Philip%20Harris.pdf?cookie_passthrough=1 | application/pdf | 150340 bytes
- [not downloaded] | https://www.whatdotheyknow.com/request/the_loan_charge_and_bankruptcy/response/1368067/attach/html/2/FOI2019%2000966%20Philip%20Harris.pdf.html |  | 0 bytes

================================================================================
MESSAGE 1 [outgoing]
HEADER: Philip Harris
18 April 2019
Delivered
--------------------------------------------------------------------------------
Dear HM Revenue and Customs,
It has been repeatedly stated by HMRC and Ministers that HMRC will not make anyone bankrupt over the Loan Charge
I am concerned this is disengenuous
Can you confirm that this promise will be maintained even if the 'debt' is transferred to a third party or debt collector?
If you cannot confirm this, please tell me how many of the 50,000 people said to be affected by the Loan Charge are likely to be made bankrupt?
If you do not have the information, can you point me at the relevant impact analysis undertaken at the instigation of the Loan Charge in 2016?
I have written these questions in as plain a way as possible to elicit frank and honest replies.
I refer you to the FOI act - specifically section 77 - with regard to replying with ambiguous or misleading statements
I would also appreciate it if the standard rhetoric about DR and TTP arrangements be committed - this is not an opportunity for you to ram your psy-ops/behavioural insights messages
Yours faithfully,
Philip Harris

================================================================================
MESSAGE 2 [incoming]
HEADER: foi.team@hmrc.gsi.gov.uk on behalf of FOI Central Team,
        HM Revenue and Customs
23 April 2019
--------------------------------------------------------------------------------
Our ref: FOI2019/00966
Dear Mr Harris,
Freedom of Information Act 2000 Acknowledgement
Thank you for your communication of 18th April which has been passed to
HMRC's Freedom of Information Team.
We have allocated the above reference which you should quote if you need
to contact us.
The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.
Yours sincerely
HMRC Freedom of Information Act Team

================================================================================
MESSAGE 3 [incoming]
HEADER: foi.team@hmrc.gsi.gov.uk on behalf of FOI Central Team,
        HM Revenue and Customs
17 May 2019
--------------------------------------------------------------------------------
1 Attachment
FOI2019 00966 Philip Harris.pdf
146K
View
Download
Dear Mr Harris
I am writing in response to your request for information, received 18
April 2019.
Yours sincerely,
HMRC Freedom of Information Team

================================================================================
ATTACHMENT TEXT EXTRACTION / OCR
================================================================================

--------------------------------------------------------------------------------
ATTACHMENT: FOI2019_00966_Philip_Harris.pdf
TEXT_FILE: FOI2019_00966_Philip_Harris.pdf.txt
METHOD: pdf_native
OCR_USED: False
PAGES: 2
--------------------------------------------------------------------------------
--- PDF page 1 ---
Information is available in large print, audio and Braille formats. 
Text Relay service prefix number – 18001 
 
 
 
Freedom of Information Team 
S1715 
6 Floor 
Central Mail Unit 
Newcastle Upon Tyne 
NE98 1ZZ 
Mr Philip Harris 
By email: request-569655-
fb3cb377@whatdotheyknow.com 
Email 
foi.request@hmrc.gsi.gov.uk 
Web 
www.gov.uk 
Date: 17 May 2019 
 
Our ref: 
FOI2019/00966 
 
 
Dear Mr Harris 
 
Freedom of Information Act 2000 (FOIA) 
 
Thank you for your request, which was received on 18 April, for the following information: 
 
“It has been repeatedly stated by HMRC and Ministers that HMRC will not make anyone 
bankrupt over the Loan Charge 
I am concerned this is disingenuous 
 
Can you confirm that this promise will be maintained even if the 'debt' is transferred to a third 
party or debt collector? 
 
If you cannot confirm this, please tell me how many of the 50,000 people said to be affected 
by the Loan Charge are likely to be made bankrupt? 
 
If you do not have the information, can you point me at the relevant impact analysis 
undertaken at the instigation of the Loan Charge in 2016?” 
 
Following a review of our records, I have established that HMRC does not hold the 
information you requested. HMRC has not stated that it will not make someone bankrupt in 
relation to the charge on disguised remuneration (DR) loans. However, I can say, that 
HMRC does not want to make anybody bankrupt, pursuing such action is very much a last 
resort and very few cases ever reach that stage. With regard to the charge on DR loans, 
bankruptcy may be necessary in a small number of cases, for example, where people are 
actively attempting to escape payment of the charge on DR loans. 
 
As a whole, HMRC does not sell debt and where it works with private sector partners on 
collections, they are not able to make any decisions relating to bankruptcy. 
 
HMRC recognises that the charge on DR loans will have a significant impact on some 
customers who have used DR schemes. We are determined to make it as straightforward as 
possible for customers to pay what they owe and get out of avoidance. 
 
HMRC has said that it will not force anyone to sell their main residence to settle their DR 
debt or the charge on DR loans. 
 
Anybody who is worried about being able to pay what they owe should get in touch with us 
as soon as possible.

--- PDF page 2 ---
2 
 
The impact of the charge on DR loans on individuals was considered at Budget 2016, when 
the measure was first announced. HMRC consulted on the measure in August 2016. The 
latest tax information and impact note (TIIN) can be found at: 
https://www.gov.uk/government/publications/disguised-remuneration-further-
update/disguised-remuneration-further-update 
 
If you are not satisfied with this reply you may request a review within two months by 
emailing foi.review@hmrc.gsi.gov.uk, or by writing to the address at the top right-hand side 
of this letter. 
 
If you are not content with the outcome of an internal review you can complain to the 
Information Commissioner’s Office 
 
 
Yours sincerely, 
 
Freedom of Information Team