In June 2012, media reporting of people using K2 for the purposes of tax avoidance was followed by the United Kingdom's Prime Minister David Cameron characterising the scheme as "morally wrong".
The offshore company would pay a lower salary than the person was originally on but would additionally loan them a large sum of money.
"[1] Speaking to ITV News, the Prime Minister of the United Kingdom at the time, David Cameron, called the scheme "morally wrong".
[11] In December 2012, the UK Government introduced the 2013 Finance Bill, which included a General Anti-Abuse Rule (GAAR) and a residency test, measures to deter people from using schemes like K2.
[14] In January 2014, having stopped using the K2 scheme, analysis of the accounts of Carr's company FN Good Limited suggested that corporation tax payments of around £500,000 were now being made.