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UK government commits to Loan Charge settlement reforms in wake of independent review into policy | Computer Weekly

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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.”  



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Europe’s Online Age Verification App Is Here

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Europe’s Online Age Verification App Is Here


The European online age verification app is ready.

The app works with passports or ID cards, is built to be “completely anonymous” for the people who use it, works on any device (smartphones, tablets, and PCs), and is open source. “Best of all, online platforms can easily rely on our age verification app, so there are no more excuses,” said European Commission president Ursula von der Leyen at a press conference on Wednesday. “Europe offers a free and easy-to-use solution that can protect our children from harmful and illegal content.”

High Expectations

“It is our duty to protect our children in the online world just as we do in the offline world. And to do that effectively, we need a harmonized European approach,” von der Leyen said at Wednesday’s press conference. “And one of the central issues is the question, how can we ensure a technical solution for age verification that is valid throughout Europe? Today, I can announce that we have the answer.”

This answer takes the form of an open source app that any private company can repurpose, as long as it complies with European privacy standards and offers the same technical solution throughout the European Union. The user downloads the app, agrees to the terms and conditions, sets up a pin or biometric access, and proves their age through an electronic identification system, or by showing a passport or ID card (in which case biometric verification is also provided). The app does not store your name, date of birth, ID number, or any other personal information, according to the European Commission—only the fact that you are over a certain age.

After that, when a person using the app wants to access a social network (minimum age: 13), pornographic site (minimum age: 18), or any other age-protected content, if they are logged in from a computer, they need only scan the QR code shown on the site they want to visit. If, on the other hand, the person logs in from a smartphone, the app sends the proof of age directly. The platform does not access the document with which the user proved it in the first place.

Adoption Event

The need to introduce a common system for the entire European Union has been discussed for some time, and according to commission technicians, the technical work is now complete. Of course, it will still be possible to circumvent the system—all it takes is for an adult to lend their phone to a younger friend—but the technological architecture exists, and it will be up to EU member states to decide whether to integrate it into national digital wallets or develop independent apps.

“No More Excuses”

For the app to really be effective, platforms must be obligated to verify the age of their users—that’s where things get tricky. The Digital Services Act, which went into effect in 2024, requires “very large online platforms”—those with more than 45 million monthly users in the European Union—to take concrete steps to mitigate systemic risks related to child protection, with heavy penalties for noncompliance.

“And that’s why Europe has the DSA: to call online platforms to their responsibilities. Because Europe will not tolerate platforms making money at the expense of our children,” European Commission executive vice president Henna Virkkunen told a press conference. She added that after an investigation into TikTok, the European institutions plan to take similar action against Facebook, Instagram, and Snapchat, as well as four porn sites. “Since the platforms do not have adequate age verification tools, we developed the solution ourselves,” he concluded. In short, as von der Leyen also remarked, “there are no more excuses.”

Bare Minimum

So far, this is the European framework that sets the general rules. On this basis, member states can consider more restrictive measures. Italy was among the first to discuss how to regulate the use of social media by minors but has so far not landed on anything concrete. Elsewhere in the EU, France’s Emmanuel Macron has been a trailblazer on the issue, pushing France to discuss a rule to ban social networks for minors under the age of 15 entirely. So far, this measure has received broad political support—but the outcome depends largely on compatibility with the Digital Services Act and the availability of effective age verification systems like the app the European Commission just released.

This article originally appeared on WIRED Italia and has been translated.



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Anthropic Plots Major London Expansion

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Anthropic Plots Major London Expansion


Anthropic is moving into a new London office as it seeks to expand its research and commercial footprint in Europe, setting up a scrap between the leading AI labs for talent emerging from British universities.

The company, which opened its first London office in 2023, is moving to the same neighborhood as Google DeepMind, OpenAI, Meta, Wayve, Isomorphic Labs, Synthesia, and various AI research institutions.

Anthropic’s new, 158,000-square-foot office footprint will have space enough for 800 people—four times its current head count—giving it room to potentially outscale OpenAI, which itself recently announced an expansion in London.

“Europe’s largest businesses and fastest-growing startups are choosing Claude, and we’re scaling to match,” says Pip White, head of EMEA North at Anthropic. “The UK combines ambitious enterprises and institutions that understand what’s at stake with AI safety with an exceptional pool of AI talent—we want to be where all of that comes together.

UK government officials had reportedly attempted to coax Anthropic into expanding its presence in London after the company recently fell out with the US administration. Anthropic refused to allow its models to be used in mass surveillance and autonomous weapon systems, leading to an ongoing legal battle between the AI lab and the Pentagon.

As part of the expansion, Anthropic says it will deepen its work with the UK’s AI Security Institute, a government body that this week published a risk evaluation of its latest model, Claude Mythos Preview. According to Politico, the UK government is one of few across Europe to have been granted access to the model, which Anthropic has released to only select parties, citing concerns over the potential for its abuse by cybercriminals.

The increasing concentration of AI companies in the same London district is an important step in creating a pathway for research to translate into AI products, says Geraint Rees, vice-provost at University College London, whose campus is around the corner from Anthropic’s new office.

“This cluster didn’t emerge from a planning document. It grew because serious researchers and companies understand that proximity isn’t a nice-to-have,” he said last month, speaking at an event attended by WIRED. “That’s how the innovation system actually works. It’s not a clean, linear transfer from lab to market. It’s messier, richer, more human than that.”



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CYBERUK ’26: UK lagging on legal protections for cyber pros | Computer Weekly

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CYBERUK ’26: UK lagging on legal protections for cyber pros | Computer Weekly


The increasingly long-in-the-tooth Computer Misuse Act (CMA) of 1990 remains an albatross around the neck of British cyber security professionals, and even though the UK government committed last December to reforming it, every minute of delay is holding back the nation’s security innovation, resilience, talent, and ability to defend itself against cyber attacks, campaigners have warned.

Ahead of the National Cyber Security Centre’s (NCSC’s) upcoming CYBERUK conference in Glasgow, the CyberUp Campaign for reform of the Computer Misuse Act (CMA) has published a new report, titled Protections for Cyber Researchers: How the UK is being left behind to maintain pressure on Westminster.

The CMA defines the vague offence of unauthorised access to a computer, which the campaigners want changed because it was written 35 years ago and fails to account for the development of the cyber security profession, and the fact that in the course of their day-to-day work, cyber pros may sometimes need to hack into other systems.

“Cyber attacks are growing in scale, sophistication and severity, with a devastating impact on infrastructure, businesses and charities,” said a CyberUp campaign spokesperson.

“While other countries have moved to refresh their cyber laws in response, the UK’s Computer Misuse Act hasn’t been updated since before the modern internet – hardly the best platform for accelerating our defences into the next decade.”

The group’s report highlights how other nations, Australia, Belgium, France, Germany, Hong Kong, Malta, Portugal, and the USA, have already secured legal protections for cyber professionals that enable them to go about their business without fear of prosecution.

In Portugal – Britain’s oldest formal ally under a treaty dating back to the 14th Century – the government last year published Decreto-Lei 125/2025, implementing the European Union (EU) Network and Information Systems (NIS2) Directive and revising the country’s cyber crime law to ensure that ethical hackers and professional cyber security practitioners working in good faith are both recognised and protected.

Portgual’s laws now accept some elements of cyber work may have to happen without explicit permission or involve unanticipated technical overreach that has a legitimate purpose.

As such, Portugal says that security work undertaken in good faith won’t be punished as long as the researcher fulfills a set of conditions. For example, they can act only to find vulnerabilities and these must be reported immediately, they must avoid taking harmful actions, like conducting DDoS attacks or installing malware, and they must respect the integrity of any data they may find or access and delete it within 10 days once the issue is addressed.

CyberUp said Portugal’s example demonstrates how cyber crime laws can be modernised to legally protect research carried out in the public interest.

“Portugal has demonstrated how to modernise their equivalent law through cyber legislation. We urge the government to follow this example and act swiftly through the Cyber Security and Resilience Bill to achieve meaningful reform, or risk lagging even further behind our peers,” the spokesperson said.

Defence Framework

Working with cyber security experts and legal advisors, the CyberUp campaign has developed its own Defence Framework that would allow cyber professionals to present a statutory defence in court as long as they adhere to the Framework’s four core principles.

  • Harm Vs. Benefit: The benefits of the activity must outweigh the potential harms;
  • Proportionality: Cyber pros must take all reasonable steps to minimise the risks of their activity;
  • Intent: They must act honestly, sincerely, and clearly direct themselves towards improving security;
  • Competence: Their qualifications and professional memberships should demonstrate they are suitably equipped to perform cyber security work.

The campaigners say this framework will bring clarity and confidence to the security sector, enabling cyber pros to run essential research tasks without fear of criminal prosecution, helping organisations operate to recognised legal standards, and enabling a more open and collaborative relationship between the cyber sector and the UK government.



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