Up to 90%

[DonkeyRhubarb]

Surprised the haven't got a QC opinion - must be dodgy

They probably have a got a QC opinion.

But mentioning it on the website would be a bit of a giveaway that this is no ordinary umbrella.

[LisaContractorUmbrella]

They probably have a got a QC opinion.

But mentioning it on the website would be a bit of a giveaway that this is no ordinary umbrella.

And the Limited Company - full employment - outside IR35 isn't

[smeg35]

Up to 90%

I'm new this contracting world but came across the following

Is this for real:
Virtuepay .co.uk/wp-content/uploads/2014/06/Umbrella-Consultancy.pdf

Looking at becoming a contractor and this just seems to good to be true. Also appears as though you pay hardly any tax whatsoever.

Am I missing something as appears to be unreal in terms of take home pay.

[cojak]

What do you think? And have you actually read this thread?

[Iliketax]

I'm new this contracting world but came across the following

Is this for real:
Virtuepay .co.uk/wp-content/uploads/2014/06/Umbrella-Consultancy.pdf

Looking at becoming a contractor and this just seems to good to be true. Also appears as though you pay hardly any tax whatsoever.

Am I missing something as appears to be unreal in terms of take home pay.

You do this and you will be laughing. Sorry, that's a typo. I meant laughed at.

You are an employee. The trust is a third-party. You get a loan. It is reasonable to suppose that, in essence, the whole shebang is a means of providing loans in connection with your employment. And what they have written about DOTAS is just bollocks. If you're interested look at the amendments made by SI 2595/2013.

[LisaContractorUmbrella]

I'm new this contracting world but came across the following

Is this for real:
Virtuepay .co.uk/wp-content/uploads/2014/06/Umbrella-Consultancy.pdf

Looking at becoming a contractor and this just seems to good to be true. Also appears as though you pay hardly any tax whatsoever.

Am I missing something as appears to be unreal in terms of take home pay.

Well, the page referred to is broken, there is no financial information available on the company as it's only been trading for just over a year, its two directors are both under 25 - they are directors of 5 companies between them and there is no financial information available on those companies either. They are offering potential customers £500 to sign up and, if what you say is correct, they are obviously promoting a tax avoidance scheme.

If all that fills you with confidence then go for it

[ASB]

Well, the page referred to is broken, there is no financial information available on the company as it's only been trading for just over a year, its two directors are both under 25 - they are directors of 5 companies between them and there is no financial information available on those companies either. They are offering potential customers £500 to sign up and, if what you say is correct, they are obviously promoting a tax avoidance scheme.

If all that fills you with confidence then go for it

The link was working yesterday, but seems to be broken today.

It has an impressive 25 odd year track record apparently. Which is curious for a company as described by you. It is not an EBT (honest). I think it described itself as a commercial benefit trust.

Here is the approx set up as documented:-

-> Contractor -> Consultancy (them) -> umbrella -> end client routes back via minimum wage. All 100% fine so far (genuinely).

-> Consultancy pays profits into trust (allegedly getting a corporation tax deduction).

-> Contractor loans trust 100 quid a month (this is a new one on me).

-> Trust makes tax free payments to contractor that are now magically tax free.

They assure it is all above board, non dotas, etc.

I cannot see anything that could possibly go wong. Definitely a no brainer if you ask me.

Just off to return the joo jantas to Zaphod.

Technology in The Hitchhiker's Guide to the Galaxy - Wikipedia, the free encyclopedia

[smeg35]

Thanks for the clarification... I know it's too good to be true. I was just amazed at the amount of companies out there offering these vehicles.

Just amazed me how these companies are allowed to get away with such things

[LisaContractorUmbrella]

The link was working yesterday, but seems to be broken today.

It has an impressive 25 odd year track record apparently. Which is curious for a company as described by you. It is not an EBT (honest). I think it described itself as a commercial benefit trust.

Here is the approx set up as documented:-

-> Contractor -> Consultancy (them) -> umbrella -> end client routes back via minimum wage. All 100% fine so far (genuinely).

-> Consultancy pays profits into trust (allegedly getting a corporation tax deduction).

-> Contractor loans trust 100 quid a month (this is a new one on me).

-> Trust makes tax free payments to contractor that are now magically tax free.

They assure it is all above board, non dotas, etc.

I cannot see anything that could possibly go wong. Definitely a no brainer if you ask me.

Just off to return the joo jantas to Zaphod.

Technology in The Hitchhiker's Guide to the Galaxy - Wikipedia, the free encyclopedia

So, the contractor works on a contract and his earnings from that contract are put through a magic bean converter basically - priceless

[LisaContractorUmbrella]

Thanks for the clarification... I know it's too good to be true. I was just amazed at the amount of companies out there offering these vehicles.

Just amazed me how these companies are allowed to get away with such things

Unfortunately there are loads of them out there - they get away with it by folding the company (often with contractors' money still in it) and then start up under another name whenever HMRC come calling. Income tax is a personal debt so it's always the contractor that gets shafted in the end - there are many proper umbrella companies in the industry (mine included) that would like to see a bit more pain and suffering going to the purveyors of such schemes and anyone that recommends them - the legislation to do it is there, in principal, I believe but I am not sure whether or not it's been used yet.