New Contractor Help......again

[sal626]

If you live in the UK, work in the UK and are inside IR35 you have no choice other than to receive payment through PAYE. You cannot 'maximise' your earnings

Well, technically you do have a choice to use an EBT scheme, although that has associated risks...

[LisaContractorUmbrella]

Well, technically you do have a choice to use an EBT scheme, although that has associated risks...

OK I'll re-phrase - according to HMR&C you have no choice. Following the budget it seems that EBT's could be going the BN66 route - big risk

[Vallah]

OK I'll re-phrase - according to HMR&C you have no choice. Following the budget it seems that EBT's could be going the BN66 route - big risk

They might bring in rules so that EBTs get taxed properly, but they'd be hard pushed to go after them restrospectively. UK tax has always been paid on the salary element AND on the loan balance.

Despite the scaremongering, BN66 hasn't given HMRC carte blanche to retrospectively go after all legitimate tax avoidance schemes.

[sal626]

OK I'll re-phrase - according to HMR&C....

"Yeah, well, you know, thats just like, thier opinion man"

[LisaContractorUmbrella]

They might bring in rules so that EBTs get taxed properly, but they'd be hard pushed to go after them restrospectively. UK tax has always been paid on the salary element AND on the loan balance.

Despite the scaremongering, BN66 hasn't given HMRC carte blanche to retrospectively go after all legitimate tax avoidance schemes.

There is no reason why HMR&C couldn't apply legislation retrospectively - you have just said yourself that EBT's do not apply tax correctly; therefore it is avoidance and therefore HMR&C will see EBT's as a viable target.

[malvolio]

Don't be too sure. Thre's only a small gap between the BN66 retrospection and doing it again for EBTs.

They have given clear and unambiguous warning that they are to be killed off in April 2011. It is not beyond the realms of possibility that they will consider anybody not getting out of existing EBTs now or setting up new ones in the face of that notice to have deliberately evaded paying legal taxes for no justifiable business reason.

[gpc]

Thanks for all the advice,

I dont want to open a can of worms re EBTs etc as its a big can and a lot of worms!!!

I think these EBTs are out as they seem too risky at the moment.....

So I think its down to either an umbrella or LTD company,

Anyone know of a really good comparison site. Ive tried several so far but nothing that really compares a like for like between the 2.

Thanks again all

[northernladuk]

Thanks for all the advice,

I dont want to open a can of worms re EBTs etc as its a big can and a lot of worms!!!

I think these EBTs are out as they seem too risky at the moment.....

So I think its down to either an umbrella or LTD company,

Anyone know of a really good comparison site. Ive tried several so far but nothing that really compares a like for like between the 2.

Thanks again all

Surely if you had done your research here as you say you would have come across this question more than a number of times. I believe there is a thread on this very question active at the moment let alone what is hidden in the deepest darkest corners of the search option.

There is no straight comparison option as they are different depending on your circumstances, duration of contracting career, type of contract, you aversion to paperwork and filing for a LTD etc etc

[RockTheBoat]

There is no reason why HMR&C couldn't apply legislation retrospectively - you have just said yourself that EBT's do not apply tax correctly; therefore it is avoidance and therefore HMR&C will see EBT's as a viable target.

Not quite.

1. they have tried to argue the ebt case and lost (see the cases mentioned previously).
2. they would have a real hard time taxing loans. whats next a tax on credit card debt, a tax on your mortgage. What if I get a loan from a friend to go gamble in Vegas, is that now taxable. come on, get real
3. the scaremongering on this site from people with an angle to sell or present is quite unbelievable. as with all schemes\systems, do the due dilligence. go with an established copmpany who have longevity and clout in the tax planning industry. be carefull of "some dodgy company" registered at some "dodgy home address" touting some hmrc approved scheme. at the end of the day, assess how you want to play it, not how others want you to go.
4. Stop thinking that bn66 has somehow given the thugs carte blanche to rewrite the past. they havent won that fight yet, not by a long shot

[gpc]

Surely if you had done your research here as you say you would have come across this question more than a number of times. I believe there is a thread on this very question active at the moment let alone what is hidden in the deepest darkest corners of the search option.

There is no straight comparison option as they are different depending on your circumstances, duration of contracting career, type of contract, you aversion to paperwork and filing for a LTD etc etc

Trust me...I have been doing plenty of research!!!

I was simply asking if anyone knew of a calculator that has a really good like for like comparison of the 2 options and gives a side by side listing of pros and cons for each for the circumstances, salary etc . I have found plenty of calcs, but was wondering if there is a super duper one that someone has used and the figures have been proved correct by their real life experience or subsequent contract.

However, I shall keep looking and speak to a few more specialist accountants

Thanks again
gpc