Loans from EBTs and other Trusts

[porrker]

[QUOTE=geoff from contracta IOM;1527971]

No only one which details what we are going to bill the agency to send them a consultant to work at their client site. When you sign contracts with agencies does it state what CU are going to pay the contractor or what the agency are going to pay you ???

I thought I read somewhere that included in the 2011 Finance Act was any payment from a Benefit Trust would count as a payment of employment income and would render such a scheme obsolete. Did this change in the final Act?

[geoff from contracta IOM]

[QUOTE=porrker;1527989]

I thought I read somewhere that included in the 2011 Finance Act was any payment from a Benefit Trust would count as a payment of employment income and would render such a scheme obsolete. Did this change in the final Act?

A payment would an interest bearing loan would not.

[porrker]

[QUOTE=geoff from contracta IOM;1527997]

A payment would an interest bearing loan would not.

Ok It was over a year ago and dont remember the exact wording but I dont recall any mention of a loan just payments but I guess thats the leap of faith one takes...

[geoff from contracta IOM]

[QUOTE=porrker;1528000]

Ok It was over a year ago and dont remember the exact wording but I dont recall any mention of a loan just payments but I guess thats the leap of faith one takes...

It also relates specifically to arrangements which involve employees, as I said in an earlier post, it is not concieveable that it would be possible to argue that someone who is genuinely self employed is an employee assuming the criteria is met. There is fairly extensive historical case law in existence as to the parameters that decide this.

[LisaContractorUmbrella]

[QUOTE=geoff from contracta IOM;1528009]

It also relates specifically to arrangements which involve employees, as I said in an earlier post, it is not concieveable that it would be possible to argue that someone who is genuinely self employed is an employee assuming the criteria is met. There is fairly extensive historical case law in existence as to the parameters that decide this.

Genuinely self-employed for the purposes of tax law or employment law?

[LisaContractorUmbrella]

[QUOTE=geoff from contracta IOM;1527971]

No only one which details what we are going to bill the agency to send them a consultant to work at their client site. When you sign contracts with agencies does it state what CU are going to pay the contractor or what the agency are going to pay you ???

So what the contractor earns has no correlation with the invoice that you send to the agency for their services?

[geoff from contracta IOM]

[QUOTE=LisaContractorUmbrella;1528027]

Genuinely self-employed for the purposes of tax law or employment law?

We are interested in the tax position what has employment law got to do with it ? If they wanted to claim an insulting amount of SSP I suspect they would not want our services.

[geoff from contracta IOM]

[QUOTE=LisaContractorUmbrella;1528030]

So what the contractor earns has no correlation with the invoice that you send to the agency for their services?

None, when a plumbing company invoices you to fix your toilet why would what the company charges you bear any relation to what they pay their plumber who actually fixed the toilet ?

[LisaContractorUmbrella]

[QUOTE=geoff from contracta IOM;1528056]

We are interested in the tax position what has employment law got to do with it ? If they wanted to claim an insulting amount of SSP I suspect they would not want our services.

Simply because HMR&C have become more concerned in recent years with employment law in terms of contractor status rather than purely tax law and they no longer accept that a worker is employed or self-employed just because a contract says so

[LisaContractorUmbrella]

[QUOTE=geoff from contracta IOM;1528058]

None, when a plumbing company invoices you to fix your toilet why would what the company charges you bear any relation to what they pay their plumber who actually fixed the toilet ?

So your company negotiates the rate with the agency then?