Just starting out as a contractor...

[Fred Bloggs]

I manage ~77% retention from a UK Ltd Co, all 100% legal, above board and worry free (apart from IR35 concerns, obviously). Is the extra ~8% or so worth the worry and anguish of grey "tax avoidance" schemes?

[Meades & Co]

I manage ~77% retention from a UK Ltd Co, all 100% legal, above board and worry free (apart from IR35 concerns, obviously). Is the extra ~8% or so worth the worry and anguish of grey "tax avoidance" schemes?

That's a subjective question isn't it, and it depends on your perception of risk. If I told you that there would be no IR35 or income shifting risk when using a scheme would that ease your concerns? After all, there is a level of risk in any method of reducing your tax bills isn't there?

[malvolio]

Dunno about that, but I would be very wary of joining any scheme that is under HMRC scrutiny or is more than likely about to be. Or, come to that, any scheme that purports to allow you to work in the UK, earn money in the UK, be a UK resident and not pay UK taxes. I suppose the only good thing is that they are not likely to last long enough to run up £100k tax bills...

You earn your money any way you can at Meades and Co, but please let's be clear that such schemes are not for those who do not even begin to understand the risks of them and certainly not for newcomers to contractor world

[RichardCranium]

After all, there is a level of risk in any method of reducing your tax bills isn't there?

But who bears all the risk?

[Meades & Co]

Dunno about that, but I would be very wary of joining any scheme that is under HMRC scrutiny or is more than likely about to be. Or, come to that, any scheme that purports to allow you to work in the UK, earn money in the UK, be a UK resident and not pay UK taxes. I suppose the only good thing is that they are not likely to last long enough to run up £100k tax bills...

You earn your money any way you can at Meades and Co, but please let's be clear that such schemes are not for those who do not even begin to understand the risks of them and certainly not for newcomers to contractor world

I totally agree that schemes are not for some individuals, but we believe that people should be able to make their own decision and that it would be remiss of us not to explain any options that were available and the risks associated with them.

[malvolio]

So we'll see a full disclosure of your methodology and why you believe it is fully compliant on your website then, will we? Somehow, I don't think so.

[Fred Bloggs]

That's a subjective question isn't it, and it depends on your perception of risk. If I told you that there would be no IR35 or income shifting risk when using a scheme would that ease your concerns? After all, there is a level of risk in any method of reducing your tax bills isn't there?

I don't "reduce my tax bills". I pay what is due. I already said, IR35 risks apart. However, I take all reasonable steps to make sure that I am as IR35 compliant as I can be, given the uncertainty.

[malvolio]

No, the details are not on our website, but our phone number is. Call it and I'll explain the options we have to you over the phone.

No thanks, I'm quite happy with what I have in place already. And me talking to you personally won't get it out in the public domain, will it? And I have spoken to a few providers over the years and understand most of the schemes (and the potential pitfalls) but have respected business confidentiality. I'll stick to warning people off them.

My point is, if these schemes are wholly supportable, morally and financially, and defensible in a court of law, why there is always an impenetrable veil of secrecy around them? And if they are really meant for high net worth individuals with multiple or highly variable income streams - which they are - why do we keep seeing people promoting them, overtly or covertly, on websites aimed at inexperienced, financially immature and moderately earning people such as you find on here?

Like I said, you earn your many however you can, just like all of us. Just don't expect to see any support from this side of the fence.

[Fred Bloggs]

No thanks, I'm quite happy with what I have in place already. And me talking to you personally won't get it out in the public domain, will it? And I have spoken to a few providers over the years and understand most of the schemes (and the potential pitfalls) but have respected business confidentiality. I'll stick to warning people off them.

My point is, if these schemes are wholly supportable, morally and financially, and defensible in a court of law, why there is always an impenetrable veil of secrecy around them? And if they are really meant for high net worth individuals with multiple or highly variable income streams - which they are - why do we keep seeing people promoting them, overtly or covertly, on websites aimed at inexperienced, financially immature and moderately earning people such as you find on here?

Like I said, you earn your many however you can, just like all of us. Just don't expect to see any support from this side of the fence.

Well said. Couldn't have said it better myself.

[RichardCranium]

if these schemes are wholly supportable, morally and financially, and defensible in a court of law, why there is always an impenetrable veil of secrecy around them? And if they are really meant for high net worth individuals with multiple or highly variable income streams - which they are - why do we keep seeing people promoting them, overtly or covertly, on websites aimed at inexperienced, financially immature and moderately earning people such as you find on here?