Offshore Company - Almost too late to back out - advice please

[raidzero]

So, after over a year of PAYE temp contracting, I'm starting a new LTD contract this Thurs. I don't have a clue what I'm doing regarding tax, vat etc.. so have decided to sign up with one of those companies who offer 'up to 90% of salary....etc.' . They are basically offering to take care of everything for me and operate on an 'investment' model basis, which is how they claim to be able to offer the hight net income.
The trouble is, I already have alarm bells ringing because immediately after I gave the go-ahead I was shunted over to an accounting company when I was led to believe the original organisation had an in-house accounting team.
Then I keep asking about this 'Trust' that will be taking my money and returning a percentage, but not all, back to me each month. And I have to 'lend' them £100 each month, which they give back (some loophole I guess).
Unfortunately I simply do not have time to shop around or research, so, good people on here, any advice would be very greatly appreciated!!

[stek]

Run, Forrest, run. Seriously, look in the EBT threads and see how many have had new arseholes ripped using schemes like this one.

[cojak]

So, after over a year of PAYE temp contracting, I'm starting a new LTD contract this Thurs. I don't have a clue what I'm doing regarding tax, vat etc.. so have decided to sign up with one of those companies who offer 'up to 90% of salary....etc.' . They are basically offering to take care of everything for me and operate on an 'investment' model basis, which is how they claim to be able to offer the hight net income.
The trouble is, I already have alarm bells ringing because immediately after I gave the go-ahead I was shunted over to an accounting company when I was led to believe the original organisation had an in-house accounting team.
Then I keep asking about this 'Trust' that will be taking my money and returning a percentage, but not all, back to me each month. And I have to 'lend' them £100 each month, which they give back (some loophole I guess).
Unfortunately I simply do not have time to shop around or research, so, good people on here, any advice would be very greatly appreciated!!

Yes, people have used similar schemes and they are all being chased for large amounts of money by HMRC.

Speak to Nixon Williams, or SJD or any of the regular accountants who post advice on these forums, they'll be able to help you.

Acting in haste and repenting at leisure was never so true as for this aspect of contracting.

[AntonioDJCA]

Run, Forrest, run. Seriously, look in the EBT threads and see how many have had new arseholes ripped using schemes like this one.

Wouldn't quite put it this way, but yes, walk away. When you hear "Loan" and 90% take home pay...

[cojak]

Wouldn't quite put it this way, but yes, walk away. When you hear "Loan" and 90% take home pay...

I would put it exactly that way. Run, don't walk...

[AntonioDJCA]

I would put it exactly that way. Run, don't walk...

Wouldn't put it that way because of professional courtesy

Otherwise wording is spot on.

[northernladuk]

Cancel anything you have with them immediately. I don't know how these guys work but if they are on the contract or the agent has their pay details or whatever change that immediately. Get rid of them completely before you do another thing.

I doubt you've had your contract checked for IR35, got a bank account, registered for VAT and so on. You shouldn't really be starting a gig with a LTD unless you have had someone like QDOS review your contract first. You could be no better off if it is inside IR35. The other things you could do later I guess.

To be fair probably be the best thing to do in this situation, is go back to a proper brolly. Go with Contractor Umbrella as their owner posts on here. Do that for the next three months until you get everything sorted out. Might not be as efficient but could be cheaper than the car crash you are involved with at the moment. Use that three months to get your bank account set up, VAT, FRS etc and understand more about IR35, 24 month rule, T&S and all the accountancy things you are now responsible for. When you are ready slip nicely in to LTD co contracting.

[raidzero]

thanks all, so glad I asked before going any further and I just hope they can't legally demand any money yet for time wasted etc..

But it would be useful to get some concrete evidence, even if anecdotal from someone who has had a bad experience, as just advising me to run is great and useful, but not very informative!

Think I will so what is suggested though and seek advice from one of those respected names mentioned.

[stek]

But it would be useful to get some concrete evidence, even if anecdotal from someone who has had a bad experience, as just advising me to run is great and useful, but not very informative!

Just read the EBT sticky thread like I said, real people in real deep shiit.......

[AntonioDJCA]

thanks all, so glad I asked before going any further and I just hope they can't legally demand any money yet for time wasted etc..

But it would be useful to get some concrete evidence, even if anecdotal from someone who has had a bad experience, as just advising me to run is great and useful, but not very informative!

Think I will so what is suggested though and seek advice from one of those respected names mentioned.

https://www.gov.uk/government/public...ood-to-be-true

Hope this helps.

EDIT: I love how HMRC calls it "too good to be true".