The Telegraph reports that the HMRC is “ruthlessly” pursuing its own employees for potential six-figure bills as part of a crackdown on tax avoidance schemes. Approximately 50,000 contractors are being targeted by the tax office for using so-called disguised remuneration schemes. In 2016, the government announced the Loan Charge which is set to target those who used disguised remuneration schemes to avoid tax as far back as 1999. Per the Telegraph, it has now emerged that the HMRC engaged contractors who were being paid in loans and is now pursuing them for the unpaid tax. A panel of MPs said it has received evidence from multiple contractors once engaged by the HMRC who say they used disguised remuneration arrangements and now face penalties. A spokesperson for the HMRC stated that the HMRC “has never endorsed or participated in disguised remuneration tax avoidance schemes. It is possible for contractors to use disguised remuneration without the participation or knowledge of their engager.”

Earlier this year, the government promised that it would review its tax avoidance crackdown on employees amid concerns that it could bankrupt contractors. In February, thousands of employees including IT and NHS workers across the UK reported receiving “staggering bills” from the HMRC relating to its Loan Charge.