Tech
UK government commits to Loan Charge settlement reforms in wake of independent review into policy | Computer Weekly
The UK government has committed to wiping thousands of pounds off the outstanding settlements of everyone who remains in scope of the Loan Charge, in response to the latest independent review into the controversial disguised remuneration policy.
The retroactive tax policy has left thousands of IT contractors living under the shadow of life-changing tax bills since it came into force in April 2019, who previously participated in loan-based remuneration schemes between December 2010 and April 2019.
Scheme participants are typically paid in part for the work they do in the form of non-taxable loans, allowing those involved to bolster their take-home pay. The Loan Charge policy was introduced to recoup the tax that scheme participants avoided paying. However, the policy’s critics claim it fails to take into account that, before and during the time period the Loan Charge covers, many of these schemes were mis-sold to participants as being an “HM Revenue & Customs compliant” means for contractors to boost income.
As previously reported by Computer Weekly, the government set out plans in the Autumn Budget 2024 to commission an independent review of the policy to “help bring the matter to a close for those affected, whilst ensuring fairness for all taxpayers”. This was the second independent review carried out into the policy, with former HMRC assistant director Ray McCann appointed by HM Treasury to oversee the process, starting with a call for evidence in March 2025.
On the same day as the Autumn Budget 2025 took place, the content of McCann’s review was published, where he made nine recommendations that he said would “create a means whereby everyone who wants to settle their tax position through agreement with HMRC, can settle”.
As stated in the McCann review: “Its method, as part of a structured approach to settlement, is to use a series of standard adjustments to suspend a portion of an individual’s current liability which, if the terms of the suspension and payment plan are met, would in time be written off.”
This approach is, he continued, intended to incentivise people to reach a settlement with HMRC and deter them from any further involvement in tax avoidance schemes.
“The review recommends a new approach to settlement which suspends (subject to conditions) part of the overall tax owed to make allowance for the proportion of the income taken by the [loan scheme] promoters and further suspends part of the overall liability equivalent to late payment interest and penalties,” said the McCann review.
Some of the McCann review’s recommendations include:
- Individuals work with HMRC to agree a reduced settlement amount, with the difference to their current Loan Charge liability suspended and eventually written off provided the terms of the suspension are met.
- Late payment interest on outstanding Loan Charge settlements should be suspended, and so should up to 10% of the gross scheme income per tax year to account for fees paid.
- Payment plans of up to five years should be offered by HMRC by default, but HMRC also has the option to approve repayment plans of 10 years.
In its response to McCann’s review, the government said it “accepts all but one” of McCann’s recommendations, and “in several cases, will go further” by offering to write off the first £5,000 of each individual’s outstanding Loan Charge liabilities.
The one recommendation in McCann’s report that the government said it would not carry forward says the time to repay Loan Charge settlements can be extended by up to 10 years, with HMRC’s approval. This recommendation further states that if the person is unable to settle their liabilities within this timeframe “as a backstop – the remainder could be suspended”.
In response, the government said it would be willing to give those in scope of the policy longer than 10 years to settle their liabilities, but does not accept the recommendation that the remaining liabilities should be suspended if people cannot pay within 10 years.
“The government believes that this recommendation would lead to unnecessary, potentially protracted, engagement between HMRC and taxpayers over payment plans and would not support the objective to draw a line under the issue,” said the government response. “However, the government commits to ensuring the existing process for taxpayers who cannot afford to pay is made clearer.”
Overall, the settlement recommendations put forward by McCann would “substantially reduce the outstanding liabilities of those yet to settle with HMRC”, said the government, in its response, adding: “Most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely.”
It also stated that it would push through legislation in the forthcoming Finance Bill to allow McCann’s recommendations to be put in force.
However, despite the positive impact the government said the settlement reforms will have on those in scope of the Loan Charge, a group of cross-party MPs – operating as the Loan Charge and Taxpayer Fairness All-Party Parliamentary Group (APPG) – have hit out at the contents of McCann’s review, describing its recommendations as “discriminatory and unfair”.
Greg Smith, co-chair of the Loan Charge and Taxpayer Fairness APPG, said the review also fails to “adequately recognise the industrial mis-selling” that contributed to so many people falling foul of the policy in the first place.
“The chancellor [Rachel Reeves] herself acknowledged last year that instead of pursuing victims of mis-selling, HMRC should go after the perpetrators. Yet instead, the government then commissioned a highly restricted review that didn’t even consider this,” said Smith.
“While concessions are a step forward and will help some of those involved, it will not end the nightmare for others and it fails to hold HMRC to account for its clear failures and its decision to discriminate so ruthlessly against people shown to be victims of mis-selling, which has led to 10, possibly now 11 suicides.”
Smith added: “There still needs to be a proper independent inquiry, which unlike the McCann Review, must actually be independent of HMRC and not led by someone who used to work there”.
Meanwhile, campaigners from the Loan Charge Action Group (LCAG) also outlined their disappointment at the contents of the review, which they described as being too narrow in scope and “clearly not independent” due to McCann’s former role working for HMRC.
LCAG spokesperson Steve Packham said the recommendations will help to reduce the size of the liabilities people are facing, but will not resolve the “thousands of cases” that remain open for a long time to come.
“There are many people [in scope of the Loan Charge] who now have lost income due to Covid, IR35 changes and the mental distress caused by the Loan Charge. There are many people who will still face unaffordable bills, which is likely to mean further bankruptcies and more distress,” he said.
“Despite the fact ministers have acknowledged that those affected are victims of mis-selling, the report does nothing to pursue the perpetrators of the industrial mis-selling – including chartered accountants, recruitment agencies and scheme promoters. This is despite Rachel Reeves herself calling for HMRC to pursue the perpetrators, not the victims, just last year.
“The review also excludes those who were pushed to settle under duress from HMRC, which means they will have ended up paying more than those who didn’t, which is grossly unfair when HMRC told them to settle and threatened them with far greater demands if they did not. There still needs to be a proper and genuinely independent inquiry into the whole thing. Only that can resolve the Loan Charge scandal and expose the truth about this whole fiasco.”
Tech
Here’s Every Country Directly Impacted by the War on Iran
On February 28, United States and Israeli forces launched a series of strikes on Iran, kicking off turmoil in the Middle East.
Pete Hegseth, the secretary of the Department of Defense, said in a recent press conference that the operation could last as long as eight weeks. President Donald Trump himself said in a press conference on March 2 that the administration projected the operation would last four or five weeks but had “the capability to go far longer than that.”
This week Iran has responded in turn, attacking Israel, regional US embassies and military bases, and other sites across the Middle East. Iran has peppered neighboring countries with hundreds of drone and ballistic missile strikes since the operation began. While many of these have been intercepted, over a thousand people have died in the region and multiple buildings have been damaged, including luxury hotels in Dubai, US military bases and embassies, and international airports and marine ports.
Israel has also started bombarding Lebanon, following strikes at the country by the Lebanese militant group Hezbollah.
The Trump administration has given various, and at times seemingly contradictory, justifications for the military action, citing everything from potential “nuclear threat” to unverified claims that Iran attempted to interfere in the 2020 and 2024 US presidential elections. As of March 5, Congress, which in the US has the sole power to declare war, has not done so.
The attacks have already disrupted supply chains, creating uncertainty for the oil and gas and fertilizer industries as key infrastructure has been targeted or shut down out of caution. Shipping traffic has halted along the Strait of Hormuz, a critical route.
As the conflict continues to escalate and expand, WIRED is tracking which countries have been affected and how. This article was last updated on March 5.
Iran
As of March 4, Iranian state media estimates that over 1,000 people have died in the country since the US-Israeli attacks began. Several schools and hospitals have been hit, according to Al Jazeera. The Israeli Air Force says it has struck Iran with over 5,000 munitions since the beginning of the operation.
Israel
Israel has faced retaliatory strikes from Iran. As of March 4, at least 11 people have died and over 40 buildings have been damaged in Tel Aviv, according to Al Jazeera.
Azerbaijan
On March 5, Azerbaijan said drone attacks launched from Iran had crossed over the country’s borders and damaged an airport building and two civilians. President Ilham Aliyev of Azerbaijan said that the country’s military forces “have been instructed to prepare and implement appropriate retaliatory measures,” according to Reuters. Iran has denied responsibility for the attacks, according to Al Jazeera.
Bahrain
Missile and drone strikes have targeted different locations in Bahrain, including a US naval base, according to the BBC. On March 2, Amazon reported that a drone strike occurred in close proximity to one of its data centers in the country. CNBC later reported that Iranian state media said that Iran had targeted the data center because of the company’s support of the US military.
Cyprus
On March 2, a drone strike hit a British air base in Cyprus, according to Reuters. It caused limited damage and no casualties. Greece, the UK, and France have lent defensive support to the country, according to a Bloomberg report.
Iraq
Since February 28, there have been reports of multiple Iranian strikes aimed at a US military base near the Erbil International Airport, according to the nonprofit monitoring group Armed Conflict Location and Event Data.
Jordan
Jordan’s armed forces have intercepted dozens of missiles since the start of the conflict. At least one Iranian-backed militant group in Iraq has claimed responsibility, according to the Associated Press. On March 2, the US Embassy in the country announced that all its personnel had temporarily departed.
Kuwait
Kuwait has endured multiple waves of Iranian missile and drone attacks since February 28. On March 2, US Central Command said in a statement that three US fighter jets were accidentally struck down by Kuwaiti air defenses during an attack that included Iranian aircraft, missiles, and drones.
Lebanon
Israel attacked southern Lebanon after the militant Lebanese group Hezbollah launched rocket and drone attacks against them. Lebanon prime minister Nawaf Salam subsequently banned Hezbollah’s military and security activities, according to Al Jazeera.
Oman
Oman’s Duqm commercial port has been hit by several drone attacks, according to Al Jazeera. Omani authorities have said at least one oil tanker off the country’s port of Khasab in the Strait of Hormuz has been attacked.
Qatar
On March 2, QatarEnergy posted on X saying that it would halt production of liquified natural gas following a military attack on its operational facilities in the country. It did not attribute the attack to any particular country. On March 3, it posted again, saying that it would also stop the production of additional products, including urea, polymers, methanol, and aluminum.
Saudi Arabia
Infrastructure in Saudi Arabia has been targeted with projectiles. On March 3, the US embassy in Riyadh, the country’s capital, was damaged following an attack. On March 4, Reuters reported that one of the Saudi Aramco’s largest domestic refineries of Saudi Aramco, the majority state-owned oil company, was targeted by an attempted drone attack.
Syria
Tom Fletcher, the United Nations undersecretary-general for humanitarian affairs and emergency relief, says that civilians and civilian infrastructure were under attack in several countries including Syria.
Turkey
On March 4, the Turkish Ministry of National Defence announced that NATO had intercepted ballistic munitions launched from Iran, and that munition fragments had fallen into Hatay, a province that borders the Mediterranean Sea and Syria. Iran has denied any missile launch towards the country.
United Arab Emirates
As of March 4, UAE Ministry of Defence officials say that the country has intercepted hundreds of drone and missile attacks from Iran. Despite the relatively high rate of interceptions, debris created by the fallout has still damaged areas of the country. In Dubai, the luxury hotel Burj Al Arab was struck by debris, as well as the Palm Jumeirah, a man-made island home to high-end hotels and apartments. On March 2, Amazon Web Services announced that two of its facilities were directly struck in the country, causing “elevated error rates and degraded availability.”
Countries Evacuating Citizens
On March 2, US assistant secretary of state for consular affairs Mora Namdar posted on X urging Americans to depart from several middle eastern countries due to “serious safety risks.” On March 4, Reuters reported that the US military has offered seats on military transport planes to Americans trying to leave the region.
Over a dozen countries have announced that they will be evacuating their citizens from the area or sponsoring repatriation flights, including the UK, Ireland, Germany and Italy.
Tech
OpenAI Had Banned Military Use. The Pentagon Tested Its Models Through Microsoft Anyway
OpenAI CEO Sam Altman is still in the hot seat this week after his company signed a deal with the US military. OpenAI employees have criticized the move, which came after Anthropic’s roughly $200 million contract with the Pentagon imploded, and asked Altman to release more information about the agreement. Altman admitted it looked “sloppy” in a social media post.
While this incident has become a major news story, it may just be the latest and most public example of OpenAI creating vague policies around how the US military can access its AI.
In 2023, OpenAI’s usage policy explicitly banned the military from accessing its AI models. But some OpenAI employees discovered the Pentagon had already started experimenting with Azure OpenAI, a version of OpenAI’s models offered by Microsoft, two sources familiar with the matter said. At the time, Microsoft had been contracting with the Department of Defense for decades. It was also OpenAI’s largest investor, and had broad license to commercialize the startup’s technology.
That same year, OpenAI employees saw Pentagon officials walking through the company’s San Francisco offices, the sources said. They spoke on the condition of anonymity as they aren’t licensed to comment on private company matters.
Some OpenAI employees were wary about associating with the Pentagon, while others were simply confused about what OpenAI’s usage policies meant. Did the policy apply to Microsoft? While sources tell WIRED it was not clear to most employees at the time, spokespeople from OpenAI and Microsoft say Azure OpenAI products are not, and were not, subject to OpenAI’s policies.
“Microsoft has a product called the Azure OpenAI Service that became available to the US Government in 2023 and is subject to Microsoft terms of service,” said spokesperson Frank Shaw in a statement to WIRED. Microsoft declined to comment specifically on when it made Azure OpenAI available to the Pentagon, but notes the service was not approved for “top secret” government workloads until 2025.
“AI is already playing a significant role in national security and we believe it’s important to have a seat at the table to help ensure it’s deployed safely and responsibly,” OpenAI spokesperson Liz Bourgeois said in a statement. “We’ve been transparent with our employees as we’ve approached this work, providing regular updates and dedicated channels where teams can ask questions and engage directly with our national security team.”
The Department of Defense did not respond to WIRED’s request for comment.
By January 2024, OpenAI updated its policies to remove the blanket ban on military use. Several OpenAI employees found out about the policy update through an article in The Intercept, sources say. Company leaders later addressed the change at an all-hands meeting, explaining how the company would tread carefully in this area moving forward.
In December 2024, OpenAI announced a partnership with Anduril to develop and deploy AI systems for “national security missions.” Ahead of the announcement, OpenAI told employees that the partnership was narrow in scope and would only deal with unclassified workloads, the same sources said. This stood in contrast to a deal Anthropic had signed with Palantir, which would see Anthropic’s AI used for classified military work.
Palantir approached OpenAI in the fall of 2024 to discuss participating in their “FedStart” program, an OpenAI spokesperson confirmed to WIRED. The company ultimately turned it down, and told employees it would’ve been too high-risk, two sources familiar with the matter tell WIRED. However, OpenAI now works with Palantir in other ways.
Around the time the Anduril deal was announced, a few dozen OpenAI employees joined a public Slack channel to discuss their concerns about the company’s military partnerships, sources say and a spokesperson confirmed. Some believed the company’s models were too unreliable to handle a user’s credit card information, let alone assist Americans on the battlefield.
Tech
Don’t Risk Birdwatching FOMO—Put Out Your Hummingbird Feeders Now
Though most people associate the beginning of March with the hopefulness of spring and the indignities of daylight saving time, there’s another important event taking place yards all over the country: hummingbird season.
While many species of hummingbirds can be seen in regions year-round, others are migratory, and this time typically marks their return from wintering grounds in Central and South America. These tiny birds can lose up to 40 percent of their body weight by the time they arrive here after having flown thousands of miles, and since many flowers haven’t bloomed yet, nectar feeders can be a source of essential fuel.
Though I test smart bird feeders year-round, I don’t use hummingbird feeders as often as I should, as it’s imperative that they be cleaned and refilled with new nectar every two or three days (a ratio of 1:4 granulated sugar to water is best, and avoid any dyes or additives) to prevent deadly bacteria and mold, and I don’t always have the time.
But if you are going to invest the energy in maintaining a hummingbird feeder, right now is the best time, as you have a chance to see migratory species you might not otherwise encounter, such as black-chinned hummingbirds. A smart feeder helps you ID them, whether they’re stopping at your feeder on their way north or arriving at their final destination.
Birdbuddy’s Pro is the smart hummingbird feeder I recommend and use myself when I’m not actively testing. The app is easy to navigate and sends cleaning reminders, the built-in solar roof keeps the battery charged, and, unlike other feeders, only the shallow bottom screws off for refilling. No having to pour sticky nectar through a narrow opening, or turn a giant cylinder upside down and risk spilling.
Note that it’s not perfect; the sensor is inconsistent and doesn’t capture every hummingbird that visits, but for the camera quality (5 MP photos, 2K video with slow-motion, 122-degree field of view) and ease of use, it’s a foible I’m willing to put up with. If you already have another Birdbuddy feeder, the hummingbird feeder images and videos will integrate seamlessly into your app feed.
Right now, the feeder is 37 percent off on Birdbuddy’s website—a deal I usually don’t see outside of shopping events like Black Friday or Amazon Prime Day. Note that the feeder only runs on 2.4 GHz Wi-Fi, and while it is fully functional without a subscription, a Birdbuddy Premium subscription will let you add friends and family members to your account so they can see the birds as well. That’s $99 a year through the app.
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