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

[northernladuk]

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.

Contractor Umbrella

PAYE Umbrella Companies for UK Contractors | Contractor Umbrella Company

Tell em NLUK sent you. They might give you free stuff.

Going down the LTD route means you've got to get your IR35 status sorted before you start don't forget.

[raidzero]

Will still start as LTD I think, but keep it simple and as advised, will worry about VAT, etc. a little further down the line. I have used an umbrella in the past but wasn't impressed with them to be honest, plus got far less net earnings.
Will read up on those EBT posts now.

[stek]

Just writing them a nicely worded 'bugger off' email now

So glad I posted here, will still start as LTD I think, but keep it simple and as advised, will worry about VAT, etc. a little further down the line. I have used an umbrella in the past but wasn't impressed with them to be honest, plus got far less net earnings.
Will read up on those EBT posts now.

You have to think about VAT now. And IR35.

[northernladuk]

IMHO you've left it too late to go LTD. Your focus should be 100% on delivering to your client and making a good impression from the off. You can't be seen to be spending time on the phone to accountants and setting your business up in clients time in the first couple of weeks. Bearing in mind accountants work the same hours as you I can't see how you will do it any other way.

Sitting there with accountancy websites up and wandering off on the phone to speak to people when you are new to a client is extremely bad form so soon in to a gig.

Just my opinion.

[raidzero]

northernladuk, I already have a LTD company set up, but as I was PAYE (temp) for a while it became dormant. I have re-activated the co and account ready for this new contract. So at least I don't need to worry about setting the LTD co. up now, and I can register for VAT later can't I? The daily rate is not massive by contractors standards, so won't be missing out on that much without the VAT.

Priority at the moment is indeed just getting in there and starting work, but I will need to find professional help asap, so will contact some of the firms mentioned.

Feels like I may have had a narrow escape there, thanks to you guys

[Alan @ BroomeAffinity]

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

I would. Regardless of professional courtesy :-)

[cojak]

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.

Knock yerself out, pick any thread and any post. http://forums.contractoruk.com/hmrc-scheme-enquiries/

Also read this http://forums.contractoruk.com/hmrc-...following.html

[BrilloPad]

The OP is getting a very lucky escape.

I wonder how many still sign up for these schemes every year?

Since retrospective legislation back in 2008 all these schemes are doomed. Since APNs in 2015 it looks even worse. And it will only get worse. Much much worse. Unless you are Starbucks...

[LisaContractorUmbrella]

Have a look at this:

Contractor Experts is an authorised brand of Raison d'Etre Wealth Structures Ltd. RAISON D'ETRE WEALTH STRUCTURES LTD International House 24 Holborn Viaduct London EC1A 2BN

RAISON D'ETRE WEALTH STRUCTURES LTD

Net Assets -31.6k GBP
Debt to Capital (%) 2.8k %
Current Liabilities 32.8k GBP
Turnover Unreported


Company name Raison D'etre Wealth Structures Ltd
Company number 08583698
Company type Private limited with share capital
Incorporation date 25 Jun 2013
Type of accounts filing Total Exemption Small
Latest annual returns 25 Jun 2015
Next annual returns due 23 Jul 2016
Latest annual accounts 30 Jun 2014
Next annual accounts due 31 Mar 2016
SIC 2003 6523 — Other Financial Intermediation Not Elsewhere Classified
SIC 2007 64999 — Other Financial Service Activities, Except Insurance And Pension Funding, (Not Including Security Dealing On Own Account And Factoring) N.e.c.
Website http://www.raisondetrewealth.com

Then have a look here: HMRC Scheme Enquiries

Then put on your running shoes, head for the hills and don't look back

[LisaContractorUmbrella]

The OP is getting a very lucky escape.

I wonder how many still sign up for these schemes every year?

Since retrospective legislation back in 2008 all these schemes are doomed. Since APNs in 2015 it looks even worse. And it will only get worse. Much much worse. Unless you are Starbucks...

Loads unfortunately We're seeing new schemes coming onto the market every week. Couple of weeks ago someone even tried to sell a scheme to me for ContractorUmbrella Basically, we raise the invoices as normal then send the money to this company that then uses EIS tax relief to make money for me, the contractors and gosh darn shucks well just about everyone

I pointed out to him that tax relief from an EIS involves an investment - he agreed. I then pointed out that, once we had retained our margin, HMRC had been paid their bit and then contractor was paid their's there wasn't anything left to invest. Ah but you see, he said, we take part of the contractor's money to use as the investment and then we loan them the balance through another company. So, I said, it's a sham arrangement with no real purpose other than to avoid tax? No, he assured me, it's all above board and devised and approved by KPMG. So you can show me the questions you put to them regarding the scheme and their answers? Was I prepared to sign an NDA? Yes, I said, why not. I then asked to see written details for the scheme mechanism so that I could discuss their proposal with my lawyers and auditors. This was, sadly a step too far. He couldn't possibly do any such thing but he would speak to his MD and call me back. Never heard another word - funny that