• If you are receiving most (80-90%) of your remuneration via "tax free" loans then you are in a Loan Scheme.
  • It doesn't matter what the company you're with calls it. Some even describe themselves as an Umbrella but they're not. It's a tax avoidance scheme.
  • The Government is introducing a new tax charge on contractor loans in 2019. Every loan you receive will be taxed.
  • If you continue using the scheme then you are just setting yourself up to be landed with an even more enormous tax bill in 3 years time.


As an alternative, consider using a Ltd company or a proper PAYE umbrella.