Giant PAYE Scheme providing 80% income under IR35??????

[bandekk]

I work with a contractor colleague who use the Giant Accountants PAYE scheme and he receives over 80% of his salary (i.e he only pays approx 20% tax). I have looked at the figures and the Giant scheme uses dividends to reduce the tax paid. I currently use Orange Genie for their umbrealla service and get nothing like this return (approx 68%). I was under the impression that if you are caught by IR35 then you cannot pay yourself dividends.

Anyone else know or use this scheme, can you explain it further? Why doesnt everyone else offer this type of scheme. I know Giant have a poor reputation, but I cant bellieve they would operate an illegal scheme.
thanks

[pickle]

not @#%$

Maybee your work chum dosnt consider himself caught by IR35, its only a state of mind you know :\

[John Galt]

I was under the impression that if you are caught by IR35 then you cannot pay yourself dividends.

-----------------------

Your impression was right

[MisterGoof]

Re: not @#%$

I have a colleague who uses this scheme, he is under the impression that:
>Receipts are not required for Daily allowance expenses
>He does not have to pay tax on the dividends when he does his tax returns.

even after checking with Giant last week.

[Bradley]

Reividends

I was under the impression that if you are caught by IR35 then you cannot pay yourself dividends.

Your impression was right

Disagree - there's nothing to stop you paying dividends under IR35. In fact you could take out all your retained profits as dividends and not pay a salary at all.

The reason for this is that the IR35 calculation effectively ignores what you get paid as salary unless it exceeds what they you should pay as a salry i.e the 95%.

[Buckstewerbuck]

WTF

I also know someone who operates undre this Giant scheme and I ask him whether his contract was IR35 caught?

he said Ginat just told him to opt out!!

Opt out of IR35...as easy as that :-)

[planetit]

Re: WTF

You will find that life becomes much more simple if you never ever have anything to do with Giant.

[rebeccaloos]

Re: WTF

there's a lot of confusion on this thread as to what Giant are offering.

They do not allow you to "opt out of IR35" (now wouldn't that be nice?).
They tell you to opt out of the agency regulations thingy.

They also offer a solution for those people who are not caught by IR35 where yes you get about 80-81% of your gross, paying you most of your contract rate as dividends which is great

But don't forget that there will be a bit of tax to pay on them (unless you decide to cheat out GB - which is great fun)

[PerlOfWisdom]

Re: WTF

They provide insurance that pays any unpaid tax and penalties if you end up being caught.

I bet that scheme wouldn't go bankrupt if many contractors claimed!

[bandekk]

QDOS

The insurance is provided by Qdos and underwritten by Credit Suisse.....