CBN Global v ContractorUmbrella

[ITGirl1978]

Hello

I am about to begin contracting and am a little confused.

I have looked at a company called CBN Global who offer 85% through a scheme that their website says has full compliance and a 20 year track record.

I then contacted Contractor Umbrella who offer a much lower return but say that all umbrella companies are equal and that I should sign up to this forum to get some advice.

Can anybody comment on the two companies as I am unsure which to go for?

Thank you so much

[cojak]

Welcome!

Their website eh? I would take a close look at that website.

• Is the company 'real'?
• Do you know who owns the company - someone you can turn to/on if the HMRC come after you with a big tax bill?
• Does it say that it's a registered company?
• Does it have any reference to VAT - is it registered for VAT?
• Is Robert Venables QC mentioned anywhere on the website?
  
  Look here for details: http://forums.contractoruk.com/accou...ml#post1923072

Things can go VERY wrong using these companies*. - Just take a look at the HMRC Enquiries forum.

Do you know why you get to take home 85%? Do you know how much money the company takes from the remaining 15%? Do you know how much they pass onto HMRC?

If you do and you STILL want to join that company - Good Luck!!

(*NOT Contractor Umbrella - in case you weren't sure...)

[cojak]

And here's another poster thinking about a similar outfit.

http://forums.contractoruk.com/accou...rnational.html

[kal]

Hello

I am about to begin contracting and am a little confused.

I have looked at a company called CBN Global who offer 85% through a scheme that their website says has full compliance and a 20 year track record.

I then contacted Contractor Umbrella who offer a much lower return but say that all umbrella companies are equal and that I should sign up to this forum to get some advice.

Can anybody comment on the two companies as I am unsure which to go for?

Thank you so much

85%? That is so yesterdays news , most are offering 90-95% nowadays, if you want to shoot yourself in the head its best to use the largest gun you can lay your hands on!, BTW Why are you not considering a Ltd?

[jbryce]

85%? That is so yesterdays news , most are offering 90-95% nowadays, if you want to shoot yourself in the head its best to use the largest gun you can lay your hands on!, BTW Why are you not considering a Ltd?

HMG and HMRC are publishing new legislation that will catch these schemes - forcing them to assign DOTAS codes to their schemes.
A lot of these schemes rely on the 'Grandfathering' clause to dodge the DOTAS avoidance legislation. This will soon be removed and they will have to register.

Just look at the pain on the other forums to decide if it's worth the hassle. It isn't.
Even if the schemes are effective avoidance (and some are) - you will, at some point, be left to fight HMRC on your own.

Use a Ltd company route - that uses perfectly acceptable means to dodge NICs. If you want to be completely safe route, I would suggest you use an Umbrella. I know people that used schemes because they were minimal hassle and are now using Contractor Umbrella - it's zero hassle and you can sleep at night.

[Maslins]

I have looked at a company called CBN Global who offer 85% through a scheme that their website says has full compliance and a 20 year track record.

I then contacted Contractor Umbrella who offer a much lower return but say that all umbrella companies are equal and that I should sign up to this forum to get some advice.

Can anybody comment on the two companies as I am unsure which to go for?

Re the bold bit, UK based ones which play by the rules are equal. Dodgy offshore schemes do pay much more, but typically end up being proved illegal. You therefore end up with a few years looking over your shoulder, then having to pay all the tax you "saved" in the short term.

My advice - don't touch offshore schemes with a barge pole. If you're dabbling your toes in the waters, go (normal UK based) umbrella. If you decide you want to go contracting long term, probably worth the effort of setting up a Ltd Co. If outside IR35 you'll save a fair bit of tax (legitimately) that way...but be aware it is more hassle, more filing responsibility for yourself, so probably best to go umbrella first if you're unsure.

[cojak]

I don't think their maths is up to much:

That depends on which structure you use.
We charge a Fee of 5% if you use our full service structure and a further charge of 10% goes to provide the trust structure, HMRC liaison and insurances; your net retention after all tax, fees and NIC's will be over 85%.
If you use your Limited Company there will be an annual charge for using the structure and an ongoing 10% charge; your net retention will be in the region of 90%

(Found in their FAQs)

[kal]

I don't think their maths is up to much:



(Found in their FAQs)

+1 That makes no sense...

[NickNick]

I don't think their maths is up to much:

That depends on which structure you use.
We charge a Fee of 5% if you use our full service structure and a further charge of 10% goes to provide the trust structure, HMRC liaison and insurances; your net retention after all tax, fees and NIC's will be over 85%.
If you use your Limited Company there will be an annual charge for using the structure and an ongoing 10% charge; your net retention will be in the region of 90%


(Found in their FAQs)

Works out for me.
income £100
5% fee leave £95
10% "further charge" leaves £85.50 i.e. over 85% (not by much, granted)

Using ltd
income £100
small fee, £1? leaves £99
10% charge leaves £89.90 which is, as they say, in the region of 90% of the original amount.


It is all nonsense of course, utter tosh, but the maths seems to be Ok. Or at least it is possible to make the maths work out.

[ITGirl1978]

Thank you for the replies everybody.

I am going to look into setting up my own company, if not I will revert back to contractor umbrella.

I definitely won't be using CBN Global having read the comments. I am glad I asked the question on here.