Anyone thru Payscheme that's been investigated?

[MobileCheese]

Hi

I got this from Payscheme Plus in response to this thread, any thoughts?

The loan structure simply utilises a loophole in the tax system so currently it is a valid way of getting paid and will remain so until such time that HMRC chose to look into this loophole and close it down. We have been in business 11 years and this particular structure in our group of companies has been operating for 7 of those years so I can assure you we would not disappear over night. Your contract of employment with us would be a standard legal document as in place with all other umbrella company service providers.

Your payments would not be erratic – as long as you are working and submitting timesheets to us we would be invoicing on your behalf and making payments to you in accordance with your agency/client payroll frequency. Payments would not be uneven as your fixed PAYE salary would be constant throughout all of your payments, the only way the “loan” element may fluctuate is if your days or hours worked vary. As for regularly running into the red this would not be due to the structure we provide – we pay all received monies from your agency out straight away into your account, no payments are withheld by us.

We have tax liability insurance in place which you would be covered under as well as an indemnity document (which I can provide to you) stating that you would not be asked to repay any monies in the event of the company going bust.

Dont do it, I know 3 other people who have used simular schemes and all ended up with £80k plus tax bills and the stress of a 2 year investigation