Paradise lost; paradise regained

Keith Gordon takes a second look at a case concerning schemes where contractors were paid in loans

In the October 2019 issue of Tax Adviser, I considered the decision of the First-tier Tribunal in the case of Hoey. This has become a lead case considering the effectiveness of HMRC’s challenge to the many thousands of contractors whose work arrangements were channelled into schemes that ended up paying them the majority of their earnings in loans. Readers will be aware that HMRC had hoped to avoid this litigation by introducing the loan charge, the principal purpose of which was to encourage taxpayers to abandon their appeals.