Contractor UK, along with ten other contract and freelance organisations, have written to Prime Minister Boris Johnson and Chancellor of the Exchequer Sajid Javid to hold them to account for commitments each made before they were appointed to their current roles, about the Loan Charge and IR35.

The letter tells Johnson that his pledge in June that the seemingly “superficial unjust” Loan Charge “needs a proper independent review” should now be actioned. It makes an appeal for an investigation to be launched into HMRC. Organisations Freelancer and Contractor Service Associate (FCSA), WTT Consulting, Loan Charge Action Group, Forum of Private Business, PRISM, Stop The Off Payroll Tax, IT Contracting and FreelanceUK.com have backed the letter.

The Loan Charge, first announced in 2016, targets those who used so-called disguised remuneration schemes to avoid tax as far back as 1999. HMRC aims to recover losses from the arrangements as contractors have to either settle their tax affairs or face penalties by the deadline, which is set to come into force today.

“As organisations who either represent contractors and freelancers, or who operate in this sector, [we] are urging you both, as the new First Lord of the Treasury and the new Chancellor of the Exchequer to stop your predecessors’ war on contracting,” the letter states.

“So change course and announce, as a matter of urgency, that you will suspend the Loan Charge…[and] announce that the government will remove the roll-out of the Off-Payroll Tax from the draft Finance Bill,” the letter states.