Re: Good
Only a small minority of the contractors I've known have done the loan thing, and they are rapidly being obliterated by HMRC weilding the hammer of retrospective legislation. At least one of my friends will likely lose his house. So it goes, I suppose.
The rest, including my good self back in the day, simply preferred to take on more personal risk in exchange for a higher rate. All tax was paid. So there's no need to get nasty.