The government has launched its promised independent review of the loan charge, but it has faced criticism from campaigners who called it a "sham."
The loan charge was introduced to close a tax loophole and recover backdated taxes, but it has left many freelance workers with large bills.
In a statement on Thursday, Treasury Minister James Murray said the review would examine barriers preventing those who owe money from "reaching a resolution with HMRC" and recommend ways to encourage them to do so.
However, it will not reconsider the government's stance that the loan charge is fair.
This has led the Loan Charge Action Group to dismiss the review as a "sham" and a "complete betrayal."
"What the government has announced today is not a review at all, as it astonishingly excludes reviewing the loan charge," said group founder Steve Packham.
He stated that the review failed to examine how HMRC set up the loan charge and who operated and promoted the tax avoidance schemes. In 1999, the then-Labour government introduced IR35, a tax law aimed at classifying many self-employed freelance workers as employees, requiring them to pay National Insurance.
Thousands of people joined schemes promoted by lawyers and accountants that let them legally avoid paying National Insurance. This often meant freelancers sent money to offshore companies, which then loaned it back to them without expecting repayment.
When the government closed this loophole, the Treasury introduced the loan charge to collect backdated taxes from freelancers. HMRC estimates about 50,000 people are affected by this charge.
Treasury Minister James Murray announced a review of the loan charge, stating, "The government believes it's fair for those who didn't pay the correct amount of income tax and National Insurance to settle their accounts with HMRC. Ignoring this would go against court decisions and be unfair to the majority of taxpayers who never used these schemes."
He also acknowledged concerns about the charge, especially the size of some payments and whether people can pay "in a reasonable timeframe."
He mentioned that the review aims to "resolve the issue for those affected, ensure fairness for all taxpayers, and provide the right support for those facing the loan charge."
The review will be led by Ray McCann, a former President of the Chartered Institute of Taxation, who is expected to share his findings by the summer.
Judith Freedman, a professor of tax law and policy at Oxford University, expressed her admiration for McCann, saying: "It's a tough job, but if anyone can handle it, he can."
Conservative MP Greg Smith, co-chair of the Loan Charge All Party Parliamentary Group (APPG), called the announcement of the review "a farce."
"This isn't the review that was promised or the one we urgently need. The APPG will keep pushing for a real investigation into this issue," he said..