CBN Global v ContractorUmbrella

[ITGirl1978]

I was thinking about this last night.

IF this company are so bad why are they able to continue offering this umbrella? wouldnt hmrc have shut them down?

ITGirl

[TheFaQQer]

I was thinking about this last night.

IF this company are so bad why are they able to continue offering this umbrella? wouldnt hmrc have shut them down?

ITGirl

If the individual gets caught evading their tax, they get hit with penalties and interest, thereby increasing the take by HMRC. So why would HMRC care - they will get their pound of flesh at some stage, and do better by letting the individual continue blithely on until they get the bill.

[jbryce]

I was thinking about this last night.

IF this company are so bad why are they able to continue offering this umbrella? wouldnt hmrc have shut them down?

ITGirl

Because they aren't doing anything illegal. The scheme may well be effective - a lot are and it's not regulated. I was pushed into my EBT by an accountant - no comeback there as these products aren't regulated.

HMRC/HMG are already proposing changes to the DOTAS law which will see grandfathering removed in which case these schemes will fall under DOTAS and APNs and FNs. When that happens promoters, and users, will be easier to target.

It's glib to say that all these schemes fail in the eyes of the law - there are very few tax accountants on these forums - but if you read the EBT threads you do have to ask yourself if it's worth the risk (hint: it isn't).

[DiscoStu]

I was thinking about this last night.

IF this company are so bad why are they able to continue offering this umbrella? wouldnt hmrc have shut them down?

ITGirl

Don't fall for the temptation of a few extra quid each week. When HMRC send you a bill in 5 years time you'll find each one of those few quid add up to quite a lot.

[Talos]

A few years ago I bought a cheap Villa in Bulgaria and registered myself there as a citizen, I opened a company there and my tax liability is 10% corporation tax and 10% income tax, this is fully legal within the EU

[DiscoStu]

A few years ago I bought a cheap Villa in Bulgaria and registered myself there as a citizen, I opened a company there and my tax liability is 10% corporation tax and 10% income tax, this is fully legal within the EU

And that little nugget would be relevant to this thread why...?

[Talos]

And that little nugget would be relevant to this thread why...?

As an alternative to an umbrella without HMRC ever likely to get on your back, maybe try to get of that crumbling rock once in a while

[TheFaQQer]

As an alternative to an umbrella without HMRC ever likely to get on your back, maybe try to get of that crumbling rock once in a while

So you invoice your UK-based contracting through a Bulgarian registered company, and agencies / clients are all happy with this arrangement?

[cojak]

As an alternative to an umbrella without HMRC ever likely to get on your back, maybe try to get of that crumbling rock once in a while

This from a poster being chased by HMRC for EBT debts.

Offer that kind of advice again and I'll ban you. Permanently.

HTH.

[DiscoStu]

As an alternative to an umbrella without HMRC ever likely to get on your back, maybe try to get of that crumbling rock once in a while

So your suggestion to the OP is instead of joining an umbrella or setting up a UK Ltd is to buy a villa in Bulgaria, obtain Bulgarian citizenship, set up a Bulgarian company, try and work around tax residency rules and attempt to persuade agencies to work with an overseas registered company?

Hardly a zero hassle solution is it?