Is this legit?

[gadgetman]

I have a colleague working for the same client as me, I am limited company, he claims he is working through JSA via a managed company and is being paid dividends.

He reckons he gets 80% return but to be honest he's not that clued up and I think he is working from sales pitch.

What kind of scheme is this? Is it legit and will it fall foul of the recent umbrella company legislation?

[Sockpuppet]

The word "managed" should scare you by now. I think that he will.

You can get 80% returns by closing your company every 2 years and getting taper relief on capital gains. For him they are probably offering high levels of bogus expense claims. Just hope he doesnt get audited.

[boredsenseless]

The word "managed" should scare you by now. I think that he will.

You can get 80% returns by closing your company every 2 years and getting taper relief on capital gains. For him they are probably offering high levels of bogus expense claims. Just hope he doesnt get audited.

Can you do it after 2, I thought it was 3, but otherwise the concept works.

[Bluebird]

I was with JSA, and used to get about 80% return, only problem was that was up-till April.

The other thing with JSA was that they took ages to pay you, their fees are astronomical and their customer service was rubbish.

I also ended up doing more work chasing ect than I do for my own company - which is cheaper to run, get just as good if not better return and you get more control.

+ I won't get stung come ARPIL !!

[gadgetman]

This guy is not on any 2 or 3 year deal, he's on low salary, dividends and expenses.

I wasn't aware you could do this outside of Ltd Co? And from April is it the case that you definitely can't?

He wasn't even aware of the April changes and I've tried to warn him to look into things a bit more closely. He told me that JSA have said that they are unaffected by the legislation changes...

[Sockpuppet]

Its not a 2 or 3 year deal. If you wind up a company within 2 years of it being formed you can get relief on the captial gains tax (e.g. whats in the bank) AFAIK and IANAA

[Bluebird]

Up until April you could do this - I think it's called a 'composite' - you get a number of contractors who all use the same Co and each gets paid a divi depending on what they've earned - it'll all stop come Arpil - if your collegue has a look at the JSA website they even refer to the aPRIL STUFF - but natrually they don't highlight the downsides.

I'd get your collegue to ask his JSA rep exactly what it will mean IF the gvt doesn't change it's tact.

[Bluebird]

sorry - need to re-pharse that - it won't be disallowed come April, however if the gvt audit the Co, they'll find that ALL directors are empolyees and will get hit for back-tax - you could even get hit for somebody elses tax in that as a dorector of the company you are liable for what it does - you'll notice if you look up these companies on Co Hse that nobody from JSA is registred as a company official !

[Nixon Williams]

It obviously depends upon your income but it is feasible for you to trade normally within your own company and keep 80% of your income and this does not involve closing your company every 2 years. Our brochure has some examples if you want to see how it works.

Alan

[Bluebird]

I currently get to keep 72-74% through my own Ltd Co, but I don't have a huge amount of expenses...