Loans from EBTs and other Trusts

[DonkeyRhubarb]

Do the sums again, putting a third to half the turnover in a SIPP. From this year the SIPP contribution is limited to £50k though. I can't say this way of working is for everyone, but it suits me.

As I pointed out above, if you stuff enough into a pension (SIPP), then IR35 is largely a non-issue. Even in a brolly you can get into the 70s percentage retained.

You can go one better than this by running a Ltd inside IR35 where the 5% admin allowance offsets half employers nic.

It's worth considering by anyone in their late 40s, early 50s as a 100% safe way of avoiding most tax. At age 55 you can take 25% from the pension as a tax free lump sum.

[DaveB]

Do the sums again, putting a third to half the turnover in a SIPP. From this year the SIPP contribution is limited to £50k though. I can't say this way of working is for everyone, but it suits me.

In that case, yes I can see it would work but as you say, not for everyone. Once Son has left home and the mortgage is paid it might work but until then I need the cash

[Fred Bloggs]

As I pointed out above, if you stuff enough into a pension (SIPP), then IR35 is largely a non-issue. Even in a brolly you can get into the 70s percentage retained.

You can go one better than this by running a Ltd inside IR35 where the 5% admin allowance offsets half employers nic.

It's worth considering by anyone in their late 40s, early 50s as a 100% safe way of avoiding most tax. At age 55 you can take 25% from the pension as a tax free lump sum.

Thanks for the pointer on the "in IR35" issue. I am in my mid 50's, that's why it works so well for me. Edited to say that - Overall, the freedom to work this way funding your SIPP is, IMO, the single biggest benefit of working as a contractor.

[Emigre]

Retention %

The whole issue of what % of gross anyone can take home is a waste of time without knowing all the other variables.

In/Out of IR35, partner's income, daily rate, SIPPs, to name a few.

If you're lucky enough to have a partner earning towards the higher rate band, income splitting will make little or no difference to you. One person earning twice as much as another is likely to have the same offsettable expenses meaning the proportion of gross that is taxable will be higher.

To take it to an extreme, someone earning say £20k per year before expenses and personal allowance etc will have an extremely high retention (if your regard expenses as retention). If you don't regard expenses as retention, then the retention % will in fact be very low.

For what its worth, my retention % is about 87% but HMRC are claiming 40% of that so take your pick. For me, using another aggressive tax arrangement represents the only chance I have of paying off anything I may owe as a result of BN66 if it finally goes against us.

My partner works, so income splitting is of little value. Needing the funds potentially for other purposes precludes me from being savvy regarding SIPPs, so if someone can show me how to transparently bank anywhere near 85% you have my full attention, along I suspect with most of the CUK universe.

[DonkeyRhubarb]

For me, using another aggressive tax arrangement represents the only chance I have of paying off anything I may owe as a result of BN66 if it finally goes against us.

Many people I talk to who are affected by BN66 have been forced down the same path. It was either that or risk losing their home/bankruptcy.

[Fred Bloggs]

.........so if someone can show me how to transparently bank anywhere near 85% you have my full attention, along I suspect with most of the CUK universe.

Sadly, if you can't make significant use of a SIPP then I don't know of a way to do that legally. Paying a large chunk of your Ltd Co turnover into a SIPP every year as a means of hanging on to as much of your hard earned as possible needs little explanation IMO. If you were interested in doing this, the information you need is not hard to find. At the end of the day, using a SIPP is largely tax deferment anyway. You pay the tax eventually, just that you get a pot of money tax efficiently for you to invest, you take 25% tax free after age 55 and a (taxed) income off the other 75% of the pot when you need it.

[monkeyrhythm]

My partner works, so income splitting is of little value. Needing the funds potentially for other purposes precludes me from being savvy regarding SIPPs, so if someone can show me how to transparently bank anywhere near 85% you have my full attention, along I suspect with most of the CUK universe.

Polygamy? assuming you're not married to your current 'partner' bring someone else in who doesn't work, marry and income split with them whilst also enjoying any other benefits the arrangement may (or may not) bring...

[Adi]

Employee benefit Trust - UK Finance Bill 2011

Hi, I found this thread totally absorbing - in between watching the Spanish Grand Prix.

I’ve been an IT contractor for over 30 years and tried most arrangements such as umbrella, limited company, sole trader, partnerships etc.

The recent publication of the UK Finance Bill on 31 March 2011 , which affected the taxation of many contractors, myself included,
has caused quite an upheaval in the industry, and been a serious setback for offshore schemes.

Click here (Mod note: or not)

[Toocan]

Hi, I found this thread totally absorbing - in between watching the Spanish Grand Prix.

I’ve been an IT contractor for over 30 years and tried most arrangements such as umbrella, limited company, sole trader, partnerships etc.

The recent publication of the UK Finance Bill on 31 March 2011 , which affected the taxation of many contractors, myself included,
has caused quite an upheaval in the industry, and been a serious setback for offshore schemes.

Click here for my

Are you selling a scheme, or collecting a referal fee?

[DaveB]

Are you selling a scheme, or collecting a referal fee?

Well the thrust of his site content seems to be "Benefit trusts don't work anymore, but hey, I found a great new alternative, just send me an email for the details!"

I'd say selling.

Surprised Admin let this one through tbh.

Although Adrian does seem to be operating on his own, so he could just be collecting referrals.

The web site is registered in his name, including his home address, personal email and telephone number. So you could always ring him and ask.

The site is hosted on Brainhost.com, which is a bog standard web hosting outfit with a "build your own website" function, and was registered through GoDaddy, who aren't really known for their services to major corporations.

Interestingly enough there is an IT contractor by the name of Adrian Hayman, in the same town, who appears to have some connection to the Church of Scientology. Two listings for Flagstream Data in the World Institute of Scientology Enterprises.

Lots more stuff here http://www.truthaboutscientology.com...an-hayman.html

Although as the disclaimer on that page says, the older the info the less likely that person is to be still involved in Scientology.

A google for connection between Adrian Hayman, Scientology and his home town turns up a good number of relevant hits, but none of the websites seem to be responding. Most of them appear to be anti-scientology sites listing past and present members, although there were a few references to bankruptcy and a court case. However, one did come back with a pic that looks very similar to that on LinkedIn. http://www.scientology-london.com/extra/888/ you'll need to search for his name to find it, the page isn't indexed in any way.

Now assuming I have the right guy, the pic looks younger to the one on the Benefit Trust site, this is probably his LinkedIn profile.

Not much untoward there really. But if you follow the links to company and personal websites at the top of the page you get a nice little marketing referral spam page instead of a real website. Follow the link to "Contact Me" and we get this page. Mobile phone number and an Email address that macthes the one used to register the the Employeebenefittrust.org site. A picture that appears to be the same guy in the Scientology one above, with a lady friend, and a note....

"I'm an IT Consultant with 30 years experience and in the past three years I've been specialising in Internet Marketing."

Which doesn't really chime with :

For the past 14 years I have been working as a Business Objects developer/designer specialising in the Insurance sector.

On his linked in page.

Now none of this necessarily means he is not a genuine guy. But lets face it, in my opinion at least, it doesn't look good.

And Adrian, if you are reading this you really should be more careful about the amount of personal info you put on the web. Everything here was freely available in the public domain. All it needed was a couple of searches.