Bedouin

[poppy01]

dear all,

these companies have discovered a loophole that exists currently. there is research by hmrc going on right now. they pretend that you are paid as a 'loan' that is never to be reclaimed, however there is no small print in existence to show you wont have to pay it back. if these companies get in trouble with the tax man in the next 20 years, they will call in their loans.. and all the money that you didnt pay in taxes that is their responsibility will be ... collected from you.

these people .. will by this time be in south america.

with all intents not to be rude to any company mentioned on this site...

listen to the sales peoples accents.. most of these companies are based in east london..and are needing to sell the product.. rather than the market wanting it.... hence you havent heard of it.

be aware.. your saving now.. could eventually be the end of your finances when hmrc close the loophole.

also please check the bn66 thread, hmrc really do think its legitimate these days to change the rules retrospectively making the arrangements invalid today ... sometime in the future..

[expat]

Dear Forum users,

This is our response to the misinformed thread currently in discussion.

Bedouin provides it's participant employees with the opportunity to select a working style with a benefits package that best suits their circumstances and provides for an average of 85% receipts to gross earnings for the Company when we place our personnel on-hire. All our on-hire consultants are employees of Bedouin and our benefits packages are fully disclosed, fully HMRC compliant and tax paid. Employees may elect to participate in our group Employee Benefit Trust if they so choose. Bedouin's agency contract chain is within the United Kingdom and we are not an Managed Service Company. We are happy to answer any further questions in this thread and welcome the opportunity of this forum. Please don't hesitate to post your questions.

Isn't that: 85% if and only if you go for the EBT?

And don't you then have to pay tax every year on the notional BIK of the "interest-free loan"?

And the fees to the group named by a most unfortunate coincidence after a bunch of lawless camel thieves?

And then finally pay the tax on it after all when the loan is recalled? And it will be, someday: the company will fold; or the company will be bought over with the "loans" as assets and the new owner will call them in; or HMG will legislate and close it.

[DonkeyRhubarb]

HMRC now have a Time Machine

also please check the bn66 thread, hmrc really do think its legitimate these days to change the rules retrospectively making the arrangements invalid today ... sometime in the future..

This is a really important point. If enough people participate in a particular arrangement then HMRC will think nothing of climbing aboard their time machine and closing it retrospectively.

Just because it is legal in December 2008 doesn't mean it will be legal in December 2008 with the benefit of HMRC hindsight.

I was in the Montpelier scheme from 2001 to 2003, and in this year's budget they made what I did 7 years ago illegal.

Before you leap, read our forum. This could be you in 7 years time!!!

http://forums.contractoruk.com/accou...apter-3-a.html

[swamp]

If something sounds too good to be true...

[TykeMerc]

If something sounds too good to be true...

Then it IS too good to be true.

I noticed Bedouin advertising on Jobserve

The simple facts are these:-

1. BN66 has proven that if you're sailing close to the wind then HMG are not reluctant to introduce retrospective legislation to close past loopholes and get you.
2. Loans aren't loans unless they are repayable, simply because a company says that it won't recall them doesn't mean that they won't in the future.
3. If you have some assurance in writing that the loans won't ever be reclaimed then they aren't loans but disguised income and if you don't pay tax on that income that's a CRIMINAL offence called TAX EVASION.
4. If you sign over your contract income to one of these providers then the money is NO LONGER YOURS, all you are entitled to is the salary you agree to when signing on as an employee, if your salary is supplemented by esoteric "benefits" or "incentives" that are later found to be taxable you will get taxed.
5. If the methods used to obtain an 85% return on contract rate were above board and proper then every Accountant and Umbrella company would already be using them.

It bears saying again:

IF IT LOOKS TOO GOOD TO BE TRUE THEN IT IS TOO GOOD TO BE TRUE!!!

[Alan @ BroomeAffinity]

Ditto.

[ookook]

Plus the 85% you get to keep means you're handing over 15% of your income to a pack of cowboys based offshore who will own you while you take all the risk. If you've got any sense you can get your tax bill to around 20% anyway and do it legitamately.

Also I lived with a girl once who was going out with a Moroccan Bedouin. Apparently the majority of Bedouin men lose their virginity to Donkeys.. just an interesting fact for the day.

[expat]

Plus the 85% you get to keep means you're handing over 15% of your income to a pack of cowboys based offshore who will own you while you take all the risk. If you've got any sense you can get your tax bill to around 20% anyway and do it legitamately.

Also I lived with a girl once who was going out with a Moroccan Bedouin. Apparently the majority of Bedouin men lose their virginity to Donkeys.. just an interesting fact for the day.

The Bedu (-in is a redundant second plural) are a people in the Arabian Peninsula. Perhaps you mean Berber?

Offshore cowbows, no argument there

[Platypus]

I was in the Montpelier scheme from 2001 to 2003, and in this year's budget they made what I did 7 years ago illegal

Now I understand why you're upset

[DonkeyRhubarb]

IF IT LOOKS TOO GOOD TO BE TRUE THEN IT IS TOO GOOD TO BE TRUE!!!

And it can often take years before you discover that it was "too good to be true", by which time it's too late to do anything about it.

HMRC don't need to rush these things because not only can they now travel back in time, they also charge interest (currently 6.5% p.a.) from when the tax was due which is a nice little earner.