On Thursday 5th April Henry took part in the Loan Charge Backbench Business Debate secured by his Parliamentary colleague Ross Thomson MP.
Under the Loan Charge, an estimated 50,000 workers - mostly contractors - were paid by way of a loan. The charge will add together all outstanding loans, over the course of up to 20 years, and tax them as income in one year. Those affected will have to pay by the end of January next year.
A number of companies and individual entered into these arrangements on the advice of tax experts and at the time HMRC did not raise any objections. Indeed, by going back some twenty years, HMRC is demanding huge tax bills for arrangements that were openly declared to them at the time.
Commenting Henry said: “Of course, I am in favour of sensible measures that catch those who are evading tax and not paying their fair share. It is also only right for the Treasury to try and maximise their income as much as possible, so we can pay for our vital public services. However, I am completely opposed to retrospective taxation in any form and at the end of the day this is what the Loan Charge amounts too.”
“Indeed, the Loan Charge is causing a huge amount of pain and suffering to a number of my constituents, including one who is having to pay back almost £200,000. This is of course an incredibly important issue and I am glad to say that the Minister responsible, Mel Stride MP, has been extremely receptive to all my representations, and I very much hope he and the Treasury will be taking urgent action to allay the fears and concerns of my constituents.”
The full debate can be viewed via the following link: https://hansard.parliament.uk/Commons/2019-04-04/debates/606C0091-A272-4442-82DC-4EE8170C700D/LoanCharge#contribution-1809610F-ED79-49D8-B0AF-F7C3F7A28D7B
Unfortunately, the debate was cut short due to a leaking water pipe in the House of Commons therefore MPs were sadly not able to hear the Minister’s response. However, if the debate is brought back Henry very much intends to take part again.