Originally posted by Vallah
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Loans from EBTs and other Trusts
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Originally posted by Vallah View PostAbsolutely.
If so, is your company willing to guarantee that by bond secured at a reputable UK institution or provide inclusive insurance that fully covers the contractor for all HMRC investigations and will pay all penalties and potential tax bills if the investigation goes against the contractor? If not, why not?Comment
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EBT Alternative
When the legislation affecting Employee Benefit Trusts was announced in December 2010
I forced to quickly find an alternative.
I've been contracting since 1977 , and still contracting, and seen several changes to
the industry and to legislation over the years which required a change of operation on my part.
I suppose this will continue to be the case going forward.
Fortunately, after the announcement in December last, I did find a scheme provider which had
anticipated this latest legislation and had a compliant Trust scheme in place (not an EBT) and in
use succesfully for several years.
Mod note: I don't think we'll bother with your blog Adi, thanks all the same. We're not too impressed with your Internet Marketing, even if you do specialise in it. Also your cut'n'paste is showing. HTH.Comment
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Originally posted by craig1 View PostSo... a UK resident contractor working in the UK and billing £100,000 a year will take home over £80,000 net of all taxes and offshoring company's cut and still be fully comply with UK taxation law?
If so, is your company willing to guarantee that by bond secured at a reputable UK institution or provide inclusive insurance that fully covers the contractor for all HMRC investigations and will pay all penalties and potential tax bills if the investigation goes against the contractor? If not, why not?Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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One would need to be either very greedy or very stupid (probably both) to join such schemes.
Especially so given BN66 situation that quiet rightfully shafted people who did not know where to stop, how can anybody seriously consider taking such massive personal risks?
If you have all this money burning your pockets then go to a casino and gamble it all: at least there you can win and if you do then it will be tax free!!! And if you lose then at least nobody will come back to you 6 years later to make you sell your house to cover compound interest on unpaid tax.Comment
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Originally posted by craig1 View PostSo... a UK resident contractor working in the UK and billing £100,000 a year will take home over £80,000 net of all taxes and offshoring company's cut and still be fully comply with UK taxation law?
If so, is your company willing to guarantee that by bond secured at a reputable UK institution or provide inclusive insurance that fully covers the contractor for all HMRC investigations and will pay all penalties and potential tax bills if the investigation goes against the contractor? If not, why not?Comment
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Originally posted by Vallah View PostBecause the majority of what the contractor saves in tax is obviously retained by the contractor, not us.Comment
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Originally posted by LisaContractorUmbrella View PostAnd therefore it is the contractor that will be taking all of the risk and not youComment
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Originally posted by craig1 View PostAnd people wonder why HMRC has a real downer over these schemes... Contractor takes all the risk while the offshoring company gets a cut that would make most agents blush.Comment
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Originally posted by Vallah View PostPersonally I think that traditional umbrella firms upping their profits by charging £30 for a 50p Faster Payments transfer is daylight robbery, but each to their own.
That's what you fail to understand - it's not the issue of how much you charge vs umbrellas or any other way, it's the question of risk shifted to clients: the more "take home" you promise the higher the risk is going to be.
And when you use words "offshore" and "scheme" in a totally artificial arrangement then you are just being like Frodo when he put on the ring - you become very visible to the Great Eye.
btw I run Ltd, never used umbrellas.Comment
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