Loans from EBTs and other Trusts

[Emigre]

Now here's some original thinking

www.contracta. im/services/entry/contractor_benefit_trust/

The CBT Scheme is the first of its kind and the only current compliant solution that will enable you to retain up to 85% of your gross income. [Er, surely gross income is the sum of the monthly retainers, isn't the rest a loan? It does say so!]

How the structure works?
You will be engaged as a self-employed contractor and will agree to supply your services to Contracta
Contracta will make an onward supply of your services to its clients. In exchange, you will receive a set monthly retainer which you will have to pay NIC and tax on
Additional income arising will be retained by Contracta and will be paid to a Contractor Trust
You and your family may apply to the Trust for loans from time to time

Surely they didn't copy this arrangement from someone else...

[DonkeyRhubarb]

Re. contracta.im

I like the disclaimer in small print at the bottom.

Disclaimer: It is possible that the Contracta Solutions structure may be challenged by HMRC in the future or retrospective legislation may be introduced

[malvolio]

If you're self employed, how do you intend getting an agency to deal with you? Retaining 85% of zero income doesn't seem like too good an idea to me...

[DonkeyRhubarb]

If you're self employed, how do you intend getting an agency to deal with you? Retaining 85% of zero income doesn't seem like too good an idea to me...

We were all registered self-employed on the DTA (bn66) scheme, and this was never a problem. It was a long time ago but, as I recall, our services were provided to agencies through a UK Ltd company. The UK company invoiced the agencies. Does that make any sense?

[helen7]

We were all registered self-employed on the DTA (bn66) scheme, and this was never a problem. It was a long time ago but, as I recall, our services were provided to agencies through a UK Ltd company. The UK company invoiced the agencies. Does that make any sense?

One of my reasons for leaving Montp was because my Agency refused to renewal my contract whilst I stayed with them.

[DonkeyRhubarb]

One of my reasons for leaving Montp was because my Agency refused to renewal my contract whilst I stayed with them.

I know someone who had a similar problem but they were employed by one of these offshore schemes (not self-employed).

I think some agencies got nervous about anything exotic and made it policy to only deal with bog standard Ltd or umbrella.

[Vallah]

I know someone who had a similar problem but they were employed by one of these offshore schemes (not self-employed).

I think some agencies got nervous about anything exotic and made it policy to only deal with bog standard Ltd or umbrella.

Some agencies won't deal with anything offshore based at all. The self employed thing isn't a problem because as you correctly point out, they're not being invoiced by a self employed person, but by a limited company, which negates their liability for PAYE and NI.

[malvolio]

Some agencies won't deal with anything offshore based at all. The self employed thing isn't a problem because as you correctly point out, they're not being invoiced by a self employed person, but by a limited company, which negates their liability for PAYE and NI.

So they're working for a UK company through an offshore company, invoicing another UK company for work done in the UK by a UK taxpayer and passing the monies received via the offshore company to another offshore company who sends some of it back to the original worker...

You can see why some might think this a slightly artificial approach

[Vallah]

So they're working for a UK company through an offshore company, invoicing another UK company for work done in the UK by a UK taxpayer and passing the monies received via the offshore company to another offshore company who sends some of it back to the original worker...

You can see why some might think this a slightly artificial approach

We've done exactly that for thousands of contractors over several years with no problems at all.

[TykeMerc]

We've done exactly that for thousands of contractors over several years with no problems at all.

YET.

For your customers sakes I hope that HMRC don't come up with a method to attack their past approach to getting paid.