Umbrella Company offering 87% return

[frog61]

Hello all
I've been advised by a friend of mine who is using a company called <mod snip> to use them instead of using my Limited company.
I am an IT contractor in the city.
I have been told that the company invoice the company I work for for the full amount of days worked, when they are paid, I am paid the same day.
my payment is around 85% of the gross payment from the company. This 85% is made up of the minimum salary, plus a loan.
The Loans beneficitary however would be myself wrapped up in a Personal Pension.
I am still awaiting for further information, but not being fully tax profeccient or expericaned on this, I would ask for any thoughts and advice.

I am guessing this is too good to be true, but wanted to check.

Thanks

[LisaContractorUmbrella]

Hello all
I've been advised by a friend of mine who is using a company called <mod snip> to use them instead of using my Limited company.
I am an IT contractor in the city.
I have been told that the company invoice the company I work for for the full amount of days worked, when they are paid, I am paid the same day.
my payment is around 85% of the gross payment from the company. This 85% is made up of the minimum salary, plus a loan.
The Loans beneficitary however would be myself wrapped up in a Personal Pension.
I am still awaiting for further information, but not being fully tax profeccient or expericaned on this, I would ask for any thoughts and advice.

I am guessing this is too good to be true, but wanted to check.

Thanks

Be afraid...be very afraid - have a read..HMRC Scheme Enquiries

[cojak]

Hello all
I've been advised by a friend of mine who is using a company called <mod snip> to use them instead of using my Limited company.
I am an IT contractor in the city.
I have been told that the company invoice the company I work for for the full amount of days worked, when they are paid, I am paid the same day.
my payment is around 85% of the gross payment from the company. This 85% is made up of the minimum salary, plus a loan.
The Loans beneficitary however would be myself wrapped up in a Personal Pension.
I am still awaiting for further information, but not being fully tax profeccient or expericaned on this, I would ask for any thoughts and advice.

I am guessing this is too good to be true, but wanted to check.

Thanks

Any umbrella offering this kind of a return these days is a dodgy cowboy outfit that will only attract lazy, greedy mugs.

See this for people who have been caught previously:
HMRC Scheme Enquiries

If you want to join those in that forum, go right ahead. Otherwise don't bother.

[frog61]

Thanks for this, I cannot find any literature regarding the pension element.
Obvioulsy the quetion is, how is the loan treated when you / personal pension is the benefitiary? what if any are the tax implications on this and what declarations should be made to the HMRC?
Speaking to them (mod snip) they do seem to suggest this has vetted by a tax specialist called Robert Venables QC.

agreed, this seems very suspicious, however I would ratehr knwo the full facts before discounting them.
thanks for the replies!

[LisaContractorUmbrella]

Thanks for this, I cannot find any literature regarding the pension element.
Obvioulsy the quetion is, how is the loan treated when you / personal pension is the benefitiary? what if any are the tax implications on this and what declarations should be made to the HMRC?
Speaking to them (mod snip) based in Carlise, they do seem to suggest this has vetted by a tax specialist called Robert Venables QC.

agreed, this seems very suspicious, however I would ratehr knwo the full facts before discounting them.
thanks for the replies!

I seem to remember that Robert Venables name was attached to another, similar, scheme and that he has actually retired. The tax implications are that, potentially, you will required to pay back any tax advantage that you may have received, plus interest, plus penalties.

The company you refer to was set up less than 6 months ago. The scheme is DOTAS registered which means you can expect to receive contact from HMRC within the next few months requesting payment

[DonkeyRhubarb]

It truly beggars belief that anyone in their right mind would even consider these type of schemes now.

[Pondlife]

3 posts, each mentioning the company name.

Just another snake oil salesman.

[DirtyDog]

3 posts, each mentioning the company name.

Just another snake oil salesman.

Pretty unsuccessful salesman

[LisaContractorUmbrella]

Pretty unsuccessful salesman

I think he thought he'd get a better reception than he did

[cojak]

All references to the crap scheme provider removed and the OP banned.

He was that good.