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  1. #11

    Double Godlike!

    malvolio's Avatar
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    Quote Originally Posted by Mr Cool Ice View Post
    Can someone with some actual experience of these guys, or at least of a comparable scheme (i.e. one that exploits this trust relationship to avoid tax) explain what is actually the level of risk here, what would happen if HMRC caught up with them to find them operating outside of what was intended by the law and what the ramifications might be for a participant?

    "Don't be greedy and take it from me that it's not worth it" isn't super helpful, and tbh if your goal is to help other contractors by dissuading them it isn't going to do a very good job. Equally, taking that example from the email infers the wrong intention entirely for their business model, so to say it is about kick backs from agencies misses the point entirely.

    I think their email is intentionally vague because of the nature of the workaround. I received the same email, and have actually spoken to them on the phone a couple times where they have been a little more forthcoming about what the model entails:

    What they described to me was that you set up a trust, and name their associates who they tell you about as the beneficiaries. You put some money in that trust, and they pay you out 84% of that, which comes from other people in their network who have named you as beneficiaries on their trust. Their role is to facilitate this network and exploit this loophole, and their supporting team and their administration absorbs that remaining 16%

    If that's what's actually happening then I'm totally fine with that. You control how much you put in the trust, so if you start small and you don't get your 84% back then you've not really lost anything.

    I'm just trying to get a real understanding of what the risks and impacts could be, to determine whether I take a punt on it.

    If someone could help out with some proper facts and an open discussion on stuff like this, I would really appreciate it.

    Thanks
    The tax doesn't just disappear. If you manage to escape HMRC for the rest of your life they will still see it as a taxable income since you have the use of the income from the trust. Then when you die your relatives get hit with a bill for the "avoided" tax plus interest from your estate. That's one reason why there has been worries about IHT in the threads about EBTs

    Of course that won't happen. You'll be served with an APN long before that.

    Or we're all talking nonsense and it's all perfectly fair and above board. In fact, I wonder why I'm not doing it already.
    Blog? What blog...?

  2. #12

    Godlike


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    Quote Originally Posted by Mr Cool Ice View Post
    Well, I think they are bloody ace
    Go for it seems like a golden opportunity, ignore the haters

  3. #13

    Some things in Moderation

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    Default Touchstone Business Development

    If you want to discuss this I would suggest you find an investors forum. They won't be so fussy will have a greater risk appetite.

  4. #14

    Super poster


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    Quote Originally Posted by cojak View Post
    If you want to discuss this I would suggest to find an investors forum. They won't be so fussy will have a greater risk appetite.
    Does he want to exchange a cow for 5 magic beans while he's here?

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