PayScheme+ - can someone spell it out pls?

[lamboman]

OK...

PayScheme+ advertise on Contractor UK aswell as other well-known sites. If they are "dodgy" or "illegal" (from April) why are they being allwoed to advertise, surely this would be misleading contractors?

Does anyone have any hard evidence that their scheme will be outlawed? By hard evidence I don't mean "they are classed as an umbrella so they will become illegal regardless".

Thanks

[GFROSTY]

..

I'd be interested in some replies on this.

My current agency will not deal with Payscheme / Batchworth / Talent etc as they issue a loan / accrued div route. The agency in question feels that the TAX / NI liability could be placed on them as all the income is earned in the UK and loan arrangements are done through a Guernsey company, which is classed as offshore.

[Pondlife]

as they issue a loan

Why would you want to let another company (which you have no control over) take your hard earned money and then lend it back to you?

What happens if they go bust - don't you think the creditors would start calling in these loans?

[danthomas25]

The loan...

How can a company go bust that operates simply by taking xx% from the money coming in and then pays the rest out?

[danthomas25]

More on Payscheme+

Back to the original question - I suggest you compile a list of questions you have regarding their operating model and put them to the company. They'll answer them, those these answers may or may not put you at ease. Questions such as "how is the loan not employment-related?" and "are you in any way an MSC?" are good starter points for you. tel no is on their website.

btw are you interested in going with them? if you have your own co, I'd stick with that. if you want better returns, get a better accountant!

[Crossroads]

How can a company go bust that operates simply by taking xx% from the money coming in and then pays the rest out?

When Hector presents them with a large bill for PAYE, NI or frankly whatever tax he feels like, should he decide that the loans/trusts/whatever should be taxed as income.

[Bagpuss]

How can a company go bust that operates simply by taking xx% from the money coming in and then pays the rest out?

Perhaps you don't remember Dignatio?

http://forums.contractoruk.com/archi...hp/t-1267.html

http://www.shout99.com/contractors/s...id=12770&n=100

[danthomas25]

more of the same

Perhaps you don't remember Dignatio?

No, afraid not (not been in the game long), but from what I read about them, the set-up at P+ is quite different.

And, although yes the co. could go bust in theory, Hector and a large tax bill can't happen for a guernsey-based company can it?

[malvolio]

Ever heard of mutual taxation arrangements? Or tax residency? If you are UK resident for tax, hector won't care where you earn your money or where you stash it, you have to pay UK tax on it.

[Hart-floot]

Hector and a large tax bill can't happen for a guernsey-based company can it?

You might like to check this out
http://www.thisisguernsey.com/code/s...ticleID=112977

As the previous poster mentioned, if you are UK resident for tax then you have to disclose everything.
Not sure if the current "amnesty" for using offshore bank accounts applies to working via offshore umbrella schemes but Hector is starting to get serious about offshore accounts. The Irish amnesty bought in a huge amount of revenue and the UK's IR took note! . Once the amnesty period is over it will be open season on those people with undisclosed accounts and i suspect they'll will not look too kindly at offshore umbrellas either.