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chez_jay in reply to @NotThamesWater

I think it's a bit unfair to lump locum workers, agency nurses and construction contractors, most of whom thought they were doing the right thing*, even if naively, and were even pushed into the arrangements by their government employers

Yes, you have to be pretty naïve to not smell a rat when you are told you're being paid by being loaned money that you never need to repay, and so no tax is due. Although the employers were agencies, not government.

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NotThamesWater in reply to @chez_jay

Although the employers were agencies, not government.

I'd argue that the govt were the ultimate employer (using their own ir35 argument..). There's plenty of anecdotal evidence to suggest that a lot of people were pushed into these arrangements, with that push starting from the end client.

Don't get me wrong - there's certainly a level of naivety involved, but it's going to be tough for someone that has otherwise never had to concern themselves with how or what tax is paid, to suddenly make choices about their tax affairs, given they are being presented with a great option that has been approved, no less, by tax lawyers and accountants.

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chez_jay in reply to @NotThamesWater

Fair points.

And full disclosure: When my agency colleagues took up loan schemes, I'd previously had the experience as a permie of an annual bonus being paid that way, and the very large employer then having to pay everyone's tax on it (probably many £ 10 millions) when HMRC found out.

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