Responding to the Government’s confirmation that it will review the loan charge, a retrospective tax on those who have historically made use of alternative remuneration schemes, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said:
“The loan charge is an unfair, retrospective tax grab on self-employed individuals who were acting within the law when they made use of alternative remuneration schemes many years ago. It’s a relief to see the Government finally recognise this fact.
“In a lot of cases, these individuals are not financial experts earning huge sums – many were acting on the advice of big employers or professional third parties. They are people who could lose everything if the loan charge is enforced.
“Retrospective taxation is unacceptable. It’s not fair to change the rule book and throw it at those who played fairly by the old rules in the past.”