Steed Solutions (composite)

**malvolio** · 9 November 2005, 11:10

Composites are clearly seen by HMRC as purely tax avoidance vehicles on the basis that there is no other commercial reason for such a structure, so yes it is probable that they will be targetted for attention any time soon (some people say this may have started already). Any tax regulation changes made from now on can be backdated to December 2004, and penatlies applied for that period, so if HMRC decides composites are no longer welcome and outlaw them, jumping now doesn't necessarily mean you're safe.

They have also received my contract and are just updating one of the clauses before signing it and returning it on my behalf.

Sorry? What does this mean - I assume you have agreed the amendment, but why hasn't it got your signature on it?

**Lucifer Box** · 9 November 2005, 11:11

In a nutshell, yes. Tax schemes can be retrospectively ruled out of order back to December 2004.

As to what you can and can't do, check the T&Cs of the agreement you have signed. If you haven't signed a contract with them and no billing has taken place, tell them to poke off if you're unhappy.

**Flinty** · 9 November 2005, 11:26

Contract

They review the contract, recommend any revisions to bring it into line with them being my representative and then they sign it on my behalf. I am new to contracting and assumed this was normal. No-one, including the agency I am working through, has raised any concerns or issues regarding this. I have obviously advised the agency that they will be signing on my behalf.

I have not signed anything. I filled out a MS Word application form that they sent me and returned that and have now received other forms including:

- self employment registration form;
- Trust Fund document;
- consultancy agreement;
- and another application form which requires signature.

So I guess I can still walk away without any obligation or owing anything?????

They charge £700 setup fee and 9% admin on fees regularly. It works out at about 85-88% take home on regular months, once the setup fee has been taken out of the first month.

I think from what I've read on here I would be better going with an umbrella company for now and maybe set up a LtdCo once I've found my footing. If I can walk away can anyone recommend any UCs? The agency I am currently contracting through recommends Giant.

**Flinty** · 9 November 2005, 11:29

Steed

Have invoiced the agency already, even though the contract has not been signed. Does this cause a problem with me walking away???

**malvolio** · 9 November 2005, 11:41

We don't know - what does your contract say? You've already committed to some form of contract with the composite. Email counts as signature these days.

Self-employment registration? What's that?

Trust Fund? Another dodgy tax-free loan scam then...

I mean, come on - you know little about the composite, you haven't read the contract, you let other people set the terms for you and you don't understand the legal and tax implications of what you're doing. Are you sure you should be a contractor?

**Flinty** · 9 November 2005, 12:00

Agency directory

OK, so I realise it doesn't sound great, but I looked through the Agency Directory on the contractor UK web site after looking through the options available to me and deciding that initially I would not start up a LtdCo.

So obviously getting high returns from my income attracted me to Steed Solutions. They sent me an application form to fill out electronically requesting basic contact information about myself. No Ts & Cs.

I was told that the way it worked, is that I would offer my services through them and they would act as a consultancy, which is similar to the way a number of the umbrella companies work, e.g. I would be an employ of their company.

So they requested a copy of the contract that they would check over and return signed, which I have also received and reviewed to my satisfaction.

I send them copies of my completed and signed time sheets and they invoice the agency that I currently contract through.

Unfortunately, or fortunately, depending on how you look at it, this contract came about and started very quickly, so having looked into things as much as I could I went with this option. I was out of work and originally looking for permanent positions, however I have a broad skillset and have considered contracting in the past, so also started looking into the possibility of contract positions. This opportunity presented itself and so I took it, as everyone has bills to pay.

Having looked on this forum since taking the contract I have realised that there are issues with the off shore/composite company route and am therefore seeking advice as to whether I can stop using this option and go with a more "legal" umbrella company option.

Unfortunately I didn't realise that they had invoiced the agency yet, as there is no contract yet signed and I have not signed any agreements to any terms and conditions.

So any advice you have would be very welcome or if you want to take some more pot shots at me then feel free to do this also, as I realise that what I have done is rather foolish.

**Lucifer Box** · 9 November 2005, 12:07

Originally posted by Flinty

So any advice you have would be very welcome or if you want to take some more pot shots at me then feel free to do this also, as I realise that what I have done is rather foolish.

Ask your composite for a copy of their T&Cs of business. Understand what you can or can't do in terms of terminating the agreement.

**Xenophon** · 9 November 2005, 12:23

Originally posted by Flinty

So any advice you have would be very welcome or if you want to take some more pot shots at me then feel free to do this also, as I realise that what I have done is rather foolish.

Advice: Get an accountant who specialises in contracting and read/research/self-educate a LOT more. The CUK and PCG sites are loaded with information. Then of course there is the HMRC site too.

Pot shot: You are a plonker.

**Flinty** · 9 November 2005, 12:23

Document

I have a document explaining how it all works, all about an agreement with Isle of Man double taxation treaty that I can't be taxed twice as the monies will have already been taxed in the IoM.

I have a consultancy agreement that I have received via email and have printed out. There is information in there about termination, but I have not yet signed and returned it.

Steed Solutions (composite)