Bosses behind dishonest loan schemes must be forced to face justice - Greg Wright

How, you might ask, can these wicked people sleep at night?

My guess is they have been slumbering soundly for years. Just ask the Loan Charge Action group, which includes a number of NHS workers who fell into the clutches of these greedy, arrogant individuals.

Consider, for example, the story of this non-clinical NHS professional, who told me he is facing a large bill from HMRC in connection with the loan charge.

“A few years ago an opportunity arose at a large NHS Trust and I was in search of an umbrella company,” he said. “I searched online and chose what I perceived to be the best one. There was no discussion about being paid in loans. They were also one of the few companies that could turn things around and get me up and running so that I could get paid on time.

“Once my first few payslips came through, I questioned why my payslip listed ‘loans’ as the form of payment, and had no answer, before being told that this was just an intermediary step.”

He added: “I was in need of money at the time and convinced myself that as the product was readily available online – it didn’t seem like a back street sale – there was no malpractice involved.

"My take-home was not too dissimilar to what I earned before as self-employed, it turns out they were deducting management fees in line with corporation tax, but bizarrely I could not claim expenses.

“Three to four years later I left the scheme and then a year later the loan charge scandal came about.”

If use of these schemes can be classified as disguised remuneration, then the marketing from the companies behind them should be classed as disguised integrity, the man said.

He added: “It took me a while to realise that the payment mechanism would be through loans.

“My emails went unanswered and I was actually told the lie that this loan was only to facilitate my joining the agency.”

At no point did the umbrella company disclose that HMRC was investigating these schemes, according to the NHS worker.

He added: “People affected from the loan charge are considering suicide, the stakes are so much higher yet the national exposure is low as many do not understand the complexities behind the matter – we are all assumed to be tax dodgers.

“I can hand on heart say that it was not my intention to deceive the tax office yet I am to pay for this mistake in a way that my life will never be the same.

“I feel that the Government has failed to protect vulnerable users of these schemes, especially when these companies are threatening to recall the so-called loans that they paid us with.

“ I’ve been worked to the point of sickness purely because I wanted to make a difference within the NHS, so this has come as a kick in the teeth.”

Over the past decade, victims of mis-selling by financial services firms have been able to claim vast amounts of compensation.

There is overwhelming evidence of misconduct by these unethical umbrella companies. Surely they should face a penalty for the years of torment they have inflicted on honest people?

To quote the man whose life has been changed forever by the loan charge: “We have retrospectively claimed money back from firms due to PPI (payment protection insurance) and false marketing... this should be no different and it covers a much more material monetary value.”

Respected professionals, such as Julia Kermode, the chief executive of the Freelancer & Contractor Services Association, and the Loan Charge All Party Parliamentary Group have long been calling for the promoters to be hauled before the authorities.

HMRC says it takes this issue very seriously and it is urging people to report the activities of these umbrella schemes in confidence.

The promoters behind these dubious schemes are still living the high life and luring in unsuspecting NHS workers.

Only the threat of hefty punishment can stop them from ruining more lives.

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