I've been contacted by a company called Ecron Management Services promising to pay me up to 86% of my contract value. (warning bells ring in my head)
Is what they are promising legit? Or a dodgy scheme that will put my in HMRC's cross hairs?
I am operating a Ltd company, contracting my services to a client through a standard recruitment agency. EM Services have this to say:
"You will become a consultant of ECM LTD who will direct your services through your own LTD Co to the agency – as such the majority of your contract value will filter down to Ercon Management as an expense for your Limited Company.
This is very simple to operate; you will be engaged by your LTD Co as a director to perform basic admin duties (like ensuring it invoices correctly) and carrying out the statutory functions of a director for a small salary/some dividends, while you will also be engaged by ECM LTD separately to perform your work, for which you will receive small consultancy fee and an option payment.
Option Payment
Option payment can be summarised as a person paying capital to another person in exchange for income based upon that original capital sum from the other party in the future.
ECM LTD will pay a capital sum to the freelancer under the option payment agreement. In return, the Contractor promises to pay an annual income to back ECM LTD at some point in the future.
This income does not become payable until Ecron Management decides it wants to trigger repayment – so payment of the income is deferred."
Has anyone got experience of this kind of billing set up?
Thanks
Sam
Is what they are promising legit? Or a dodgy scheme that will put my in HMRC's cross hairs?
I am operating a Ltd company, contracting my services to a client through a standard recruitment agency. EM Services have this to say:
"You will become a consultant of ECM LTD who will direct your services through your own LTD Co to the agency – as such the majority of your contract value will filter down to Ercon Management as an expense for your Limited Company.
This is very simple to operate; you will be engaged by your LTD Co as a director to perform basic admin duties (like ensuring it invoices correctly) and carrying out the statutory functions of a director for a small salary/some dividends, while you will also be engaged by ECM LTD separately to perform your work, for which you will receive small consultancy fee and an option payment.
Option Payment
Option payment can be summarised as a person paying capital to another person in exchange for income based upon that original capital sum from the other party in the future.
ECM LTD will pay a capital sum to the freelancer under the option payment agreement. In return, the Contractor promises to pay an annual income to back ECM LTD at some point in the future.
This income does not become payable until Ecron Management decides it wants to trigger repayment – so payment of the income is deferred."
Has anyone got experience of this kind of billing set up?
Thanks
Sam
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