Small (and not so small) Umbrella companies and Ponzi schemes

[ASB]

not pay you your full entitlement as you become a creditor (behind the tax man).

HMRC lost their preferred creditor status in 2003. A side effect of this has been that they now seem to be much quicker to force insolvency.

[ASB]

What protection does that provide in the even of liquidation?

I don't see how it can provide any unfortunately. Since it's not actual client money it cannot be in actual client accounts and out of reach of creditors.

[Alan @ BroomeAffinity]

I don't see how it can provide any unfortunately. Since it's not actual client money it cannot be in actual client accounts and out of reach of creditors.

Exactly. Which is why I asked.

[PayMatters]

You're right very little as they aren't specifically client monies (client money can be ring fenced from the other debts of an insolvent business).

What it means though is that we treat them as if they are client monies and hence the business is funded from profit and other sources (and not reliant on tax monies).

[fzbucks]

Not sure it's fair to use the term 'greedy' for anyone trying to figure out which is the best option when it comes to sensible and effective tax planning. All this has happened since the very unfair IR35 came into being.

BTW there is no such word as 'gullible'.

It IS fair to call them greedy - why do you think it is not - I agree that no one should pay more tax etc than they are due - but some people just know the scheme they are using is dodgy but as long as they save a few quid they take the risk - seems fair to call that kind of person greedy.