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HMRC refers hundreds to Samaritans after ‘impossible demands’

HMRC Samaritans
HMRC Samaritans

Hundreds of taxpayers have been referred to the Samaritans after being pursued by HM Revenue and Customs (HMRC).

The taxman has signposted some 322 individuals to the charity in total since a partnership with the tax office began in September 2022, data obtained by The Telegraph in a Freedom of Information request revealed.

HMRC first started working with the Samaritans – which provides emotional support to those in extreme distress or who are at risk of suicide – after it emerged that 10 taxpayers had taken their own lives over the loan charge scandal.

Over 60,000 freelancers have been chased for crippling bills running sometimes in the six figures after an HMRC crackdown on tax-saving schemes, in which wages were paid via loans to minimise income tax and National Insurance.

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Campaigners claim that freelancers were led to believe these schemes were above board and compliant with UK tax law. But in 2017, HMRC levied a tax charge on those who entered into them, demanding they pay back the disputed tax all in one go.

The crackdown has been called the “next Horizon scandal” by MPs in the House of Commons.

HMRC said it did not collect data on the reasons for referrals to the Samaritans. However, it is likely some were loan charge victims struggling to cope with the taxman’s demands.

Steve Packham, of the Loan Charge Action Group said the data was another “damning indictment” of the controversial charge.

He said: “The fact that HMRC has referred over 300 people to the Samaritans in two years shows the impact of the way they hound people and issue unpayable demands, including related to the loan charge.

“The Loan Charge Action Group has supported many people expressing suicidal thoughts or intent and the number of HMRC referrals to the Samaritans would have been much higher, had LCAG not operated its volunteer helpline for three years.

“With 40,000 people still facing the loan charge, we are deeply worried about what the impact will be and rather than relying on charities like the Samaritans, HMRC and the Government must accept responsibly and change their approach before more lives are ruined.”

Last month, The Telegraph revealed that over 200 HMRC staff had received training from the Samaritans through its partnership, which it has decided to extend for another three years.

The Money Advice Trust, which runs the Business Debtline, said a quarter of its callers had income tax debt, making it one of the most common types of debt it sees.

A spokesman for HMRC said: “We appreciate and recognise that dealing with tax, financial hardship, or debt can lead to pressure on people. We are committed to identifying and supporting all taxpayers who need extra help.

“We have been working with Samaritans to help identify those who might be in vulnerable circumstances and have referred 322 taxpayers to the charity so far.

“This service builds on the existing support we provide to all taxpayers who need extra support to manage their tax affairs.”