Offshore Option

[geoff from contracta IOM]

I have used the forum previously to keep an eye on the industry but felt the need to comment on this as Vallah is getting a pretty hard time . Firstly i'll declare my hand, I work for an operator one of these " schemes " and we insure against investigation and use a specialist UK based accountants practice to file clients S/A returns. For obvious reasons I also won't go into the details here as the Mods wouldn't appreciate it but I cannot understand why members on this forum are so anti examining options that providers have spent tens of thousands of pounds to create , if they aren't robust it's money down the drain for us. Unfortunately nowdays any dealings with HMRC carry risk of investigation as we all have lots of Frank Gallagher types to keep in strong lager and flat screen TV's and there is no point Hector chasing them for their undeclared ebay earnings. As for hoping legislation to provide a level playing field it's worth remembering the only person who entered parliment with honourable intentions was Guy Faulkes.

[cojak]

Snakeoil. It doesn't matter if they cost thousands of pound for you to create, if you get a few hundred grand back before they get closed down.

And Guy Fawkes went into Parliament to blow it up, not terribly honourable at all really...

[geoff from contracta IOM]

Neither is the government allowing HMRC to bully and harass those who work hard and only seek to increase their take home pay. I'm not reffering specifically to " schemes " either this forum is full of stories of contractors operating in good faith only to face potentially life altering demands from HMRC and our elected government are happy to allow this to continue whilst spouting about encouraging business, as we all know business involves an element of risk for the risk the rewards are being eroded.

[cojak]

Personally I don't see any problem with these schemes, as long as you go in with your eyes wide open.

That means accepting the real possibility that the scheme could fail and you'll have to repay tax/nic + interest.

Of course it also means that the only sensible option is not to spend the extra money. Think of it as a cheap loan from HMG and save/invest it wisely.

Unfortunately, I suspect most people only look at the upside (the 85%).

Fair enough DR. I can understand saving the money you make 'just in case'.

But for how long should you save it? 3 years? 6 years? 10 years?

[LisaContractorUmbrella]

I have used the forum previously to keep an eye on the industry but felt the need to comment on this as Vallah is getting a pretty hard time . Firstly i'll declare my hand, I work for an operator one of these " schemes " and we insure against investigation and use a specialist UK based accountants practice to file clients S/A returns. For obvious reasons I also won't go into the details here as the Mods wouldn't appreciate it but I cannot understand why members on this forum are so anti examining options that providers have spent tens of thousands of pounds to create , if they aren't robust it's money down the drain for us. Unfortunately nowdays any dealings with HMRC carry risk of investigation as we all have lots of Frank Gallagher types to keep in strong lager and flat screen TV's and there is no point Hector chasing them for their undeclared ebay earnings. As for hoping legislation to provide a level playing field it's worth remembering the only person who entered parliment with honourable intentions was Guy Faulkes.

How do you 'insure' against investigation by HMR&C?

It seems very strange that everyone who comes on this board extolling the virtues of these 'schemes' will never explain how theirs works despite repeated requests

[DonkeyRhubarb]

Fair enough DR. I can understand saving the money you make 'just in case'.

But for how long should you save it? 3 years? 6 years? 10 years?

A long time.

These days, as a matter of routine, HMRC place any returns involving a scheme under enquiry. It is very difficult to slip under the radar. They also have a habit of leaving enquiries open indefinitely, even if they aren't actively pursuing an investigation.

It can take many years to get closure.

[Vallah]

b) Dec 9th covers all income or things that can be construed as income paid to UK Tax Residents, not just EBTs and you are kidding yourselves (and your clients) if you believe you are exempt..

No it doesn't. You're clearly not as well read up on the subject as you kid yourself that you are.

[Sockpuppet]

HMRC don't "approve" schemes. We just work within the law as it stands.

But you'd feel confident sending them a letter saying "Screw you we're getting tulip loads of return here" becuase if you are within the law then ovbiously they can't do anything can they.

[geoff from contracta IOM]

LCU we are more than happy to explain how the scheme operates in intricate detail but this is not the platform to do so, it's a forum for informed discussion and as our products finer details are comercially sensitive mass broadcast is not in anyones interest but do remember those paid by EBT up until Dec have kept their additional take home. I just don't think its fair to state that all these schemes are dodgy.

[LisaContractorUmbrella]

LCU we are more than happy to explain how the scheme operates in intricate detail but this is not the platform to do so, it's a forum for informed discussion and as our products finer details are comercially sensitive mass broadcast is not in anyones interest but do remember those paid by EBT up until Dec have kept their additional take home. I just don't think its fair to state that all these schemes are dodgy.

It is extremely difficult to have an informed discussion if one does not have all the facts - people here are not going to accept that anyone's 'scheme' is safe without knowing the details and you are not prepared to give them.