The Daily Rumour Mill

[Bookworm]

Danger signs are appearing at every corner, with the onset of apparent investigations into various major players in the umbrella world. Is it possible that within the IT contracting community that we can get passed the rumours and hearsay and get some definitive answers about who to avoid because of Hectors attention.

We should all know the risks involved with the plethora of companies and schemes out there, but if you ask around, there is intense speculation about some of the major players....... IR are on site carrying out investigations??????

I have just gone Limited because of the rumours but does anyone know the real facts? We all need to know..... and we all know something.

[Xenophon]

Danger signs are appearing at every corner, with the onset of apparent investigations into various major players in the umbrella world.

Which 'major players in the umbrella world'?

[Bookworm]

Rumour says Giant and JSA, but cannot get anyone to coroborate, also a couple of the Isle of Man based companies.

[Xenophon]

Sounds interesting. I don't know JSA, but I do know Giant and they have always positioned themselves as HMRC-friendly. If what you have heard is true then it appears that this could be being put to the test...

[Bookworm]

No doubt being a major player identifies them to HMRC as a major target and I am guessing that the HMRc sees them and other large umbrellas as an easy testing ground.

I have had several conversations with colleagues wqho are jumping ship with several IOM composite providers, before HMRC can reel them in.

It has to be more than speculation, or pessimistic contractors as it is constantly being discussed in our canteen.

[freshblue]

Hmmm

If that is the case how come HMRC never seen to be able to "down" some of the engineering composites? How can Brookson, Gabem et al get away with it? The problem for the HMRC as I see it is that every composite would need to be looked at so the only option is to try and close the current IoM "facilities". Any Agency allowing a contractor to use that type of arrangement (and the end client) is mad imo.

[Darren@UptonAccountants]

Easy Meat

It's typical tax practice....they're looking for maximum return from minimum effort. By looking at the major players they can cover a large number of cases in not a lot of time....easy meat!!

As for offshore schemes, most of the accountants that have been on here have all criticised these in the past, all they're doing is going for firms that are known to operate these schemes as they should be additional easy targets.

Easiest way to keep out of there line of sight is to move to a smaller player IMO.

[malvolio]

Easiest way to keep out of there line of sight is to move to a smaller player IMO.

Errm.. doesn't necessarily help. All such investigations are potentially back-datable to December 2004, as per the last PBS. In fact, bailing will probably only confirm that you are avoiding legitimate taxation, else "why have you changed your arangements, sir...?"

So if they decide it's wrong and you're hooked, moving out now is only a partial remedy; you may still get hit for the time spent under the scheme up to the point you bailed out.

Good here, innit...

[Darren@UptonAccountants]

Easy Meat

Very true Mal, all that can be done is to mitigate the risk of enquiry going forward. One of the ways is to make one less attractive to the IR (i.e. less of a reward for more work) through structuring the ltd company correctly or to possibly not use the bigger players.

[Technically Blonde]

Composites too

Which 'major players in the umbrella world'?

think you might find composite provider(s) are under scrutiny as well