15% tax schemes

[malvolio]

There would appear to be alot of sceptics on this forum about offshore schemes with no facts just fear. I was just about to sign up to one but now am unsure. Has anyone here ever gone to HMRC or an independent tax authority about offshore solutions? Why isnt there any clarity on what is and what isnt going to result in an investigation in the future?

One reason we're sceptical is that the 15% is not tax, it's fees paid to the scheme. The 85% you get to keep is effectively not declared to the taxman. Can you not see how that might be a problem?

Ignore the debate about the retrospective application of rules under BN66, which is seriously out of order but not part of this debate. From the last budget, all such schemes are going to be examined by HMRC. It would be a fool who joined one now unless they had a lot of disposable income from multiple streams and access to their own specialist legal resources, which is who these schemes are designed for. That ain't me and I doubt it's you..

[PhilAtBFCA]

Maggie T

Oh Maggie, be realistic.

What you are reading is not fear.

Read the BN66 forum for facts on what happens when HMRC change the rules.
Search on the forums for EBT to see the facts of how contractors suffer when they join these schemes and they go wrong.

Someone who is selling the services of an offshore or sheme provider may well say " any bad publicity is just fear, but dont worry our scheme is different". What did you expect them to say ?

I find that no one on this forum ever has to explain or support the position of contractors using either umbrella or ltd co methods of trading.

But people constantly feel the need to defend any offshore schemes which seems to offer such wonderful returns.

At the end of the day, these are schemes, and will always be schemes. That way HMRC will always be after closing them, now or in the future. When they do you may wish that you had not used them.

On the otherhand, you may just want to live in denial of the obvious, luckily its a free country :-)

Phil

[DonkeyRhubarb]

Risk warning

All schemes should come with the following risk warnings, like if you were buying an investment where the return is not guaranteed.

1) There is a risk that you could be put under investigation by HMRC, and kept under investigation for many years

2) There is a risk that the scheme promoter could cease trading, leaving you on your own to fight HMRC

3) There is a risk that the scheme could fail, and HMRC may demand several years back tax with interest on top*

[Disclaimer: this is not advice]
The only situation where a scheme is a sure-fire bet is if you plan to leave the country and move somewhere where HMRC can't touch you, and then never return.
[/Disclaimer: this is not advice]

* HMRC charge high rates of interest. A couple of years ago it was 8.5% p.a. See here for details: http://www.hmrc.gov.uk/rates/interest-late.htm

[BrilloPad]

One reason we're sceptical is that the 15% is not tax, it's fees paid to the scheme. The 85% you get to keep is effectively not declared to the taxman. Can you not see how that might be a problem?

Ignore the debate about the retrospective application of rules under BN66, which is seriously out of order but not part of this debate. From the last budget, all such schemes are going to be examined by HMRC. It would be a fool who joined one now unless they had a lot of disposable income from multiple streams and access to their own specialist legal resources, which is who these schemes are designed for. That ain't me and I doubt it's you..

Small point of correction : 10% is fees and 5% tax. Doesn't affect your point though.

However we can agree you must like high risk adventures if you want to join one of these schemes. you dont do much better than running your own limited. is it really worth it?

[cojak]

chavvy = Sanzar AICMFP....

[cojak]

There would appear to be alot of sceptics on this forum about offshore schemes with no facts just fear. I was just about to sign up to one but now am unsure. Has anyone here ever gone to HMRC or an independent tax authority about offshore solutions? Why isnt there any clarity on what is and what isnt going to result in an investigation in the future?

No facts just fear eh?

So How about

BN66 (HMRC side of things) or Sunday Solutions or Norla or...

[BlasterBates]

Actually I was wondering about this and came accross the following site

http://blaster-bates-ripoff-tax-scheme.html

Looks quite good.

Exploits a loophole that money kept in mouldy old mattresses is not taxable, provided everyone keeps quiet about it.

[RichardCranium]

Actually I was wondering about this and came accross the following site http://blaster-bates-ripoff-tax-scheme.html

HMRC has taken it down already!

[DonkeyRhubarb]

Actually I was wondering about this and came accross the following site

http://blaster-bates-ripoff-tax-scheme.html

Looks quite good.

The website seems to have disappeared. Perhaps they've done a runner already.

[BrilloPad]

Actually I was wondering about this and came accross the following site

http://blaster-bates-ripoff-tax-scheme.html

Looks quite good.

Exploits a loophole that money kept in mouldy old mattresses is not taxable, provided everyone keeps quiet about it.

It did not work for Ken Dodd.