Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate his Department has made of how many clients of loan scheme promoters may become bankrupt.

HMRC cannot provide an estimate for the number of people who have used disguised remuneration (DR) loan schemes who have been declared or may become bankrupt. Individuals may be declared bankrupt for many reasons, not necessarily as a direct result of tax liabilities arising from DR scheme use. HMRC are not always the only creditor; some individuals may be declared bankrupt as a result of a non-HMRC debt and some individuals may choose to enter insolvency themselves, based on their overall financial position.

The Government is aware that some unscrupulous promoters continue to sell DR loan schemes. The Government and HMRC remain committed to tackling those who promote tax avoidance schemes. In March 2020, HMRC published their strategy for tackling promoters, which set out HMRC’s work to date and outlined how HMRC will continue to take robust action against promoters of tax avoidance.

HMRC only ever consider insolvency as a last resort and encourage taxpayers to get in contact to agree the best way to settle their tax debts. Anyone who is worried about being able to pay what they owe is encouraged to get in touch with HMRC as soon as possible.