Offshore Option

[DonkeyRhubarb]

As someone else said, if it's only going to gain you an extra 6 or 7% (whatever the figure suggested was), to me it's hardly worth the worry of any potential investigation down the line.

In the early days of IR35, when there was a lot more uncertainty about, schemes were used by people who'd previously been Ltd. These days I'm sure that's not the case.

It will be brolly users losing 40%+ of their income who will be tempted by the "85% schemes".

The other thing that will be attractive to the brolly crowd is that, unlike Ltd, there's minimal admin involved in being in a scheme.

[Vallah]

And how does this fit in the with the new HMRC view on loans?

The first bullet point should be a big clue Clare....

[Clare@InTouch]

The first bullet point should be a big clue Clare....

I was just curious if we'd get a full explanation of how it worked, but alas it's not to be

[Vallah]

I was just curious if we'd get a full explanation of how it worked, but alas it's not to be

That scheme is nothing to do with me!

[Clare@InTouch]

That scheme is nothing to do with me!

I didn't think it was, just blatent spamming from someone!

[DonkeyRhubarb]

The first bullet point should be a big clue Clare....

Yes, and if loads of schemes go down that route it's going to be red rag to a bull with HMRC.

If history is anything to go by, they'll probably dick around going through the motions of investigating for a few years and then wheel out the time machine.

If I was being really cynical, I'd bet on them dragging it out long enough to see if we get another Labour govt before pressing the retro button.

[geoff from contracta IOM]

I didn't think it was, just blatent spamming from someone!

We were accused of hiding and not giving out url's , then when I do i'm spamming ? make up your mind clare. posters where enquiring as to the aproach post Dec 9th I answered that with our approach. We don't for obvious reasons disclose the finer details of our method

[TheFaQQer]

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

And how does this fit in the with the new HMRC view on loans?

I'd be more concerned that at any stage, the provider could turn round to everyone and say "No, you're not getting any more money out of the trust". Or recalling the loans.

[Vallah]

I'd be more concerned that at any stage, the provider could turn round to everyone and say "No, you're not getting any more money out of the trust". Or recalling the loans.

You don't understand how these things work then. The company and the trust will be too very different things. As a company, we couldn't recall EBT loans even if we wanted to, because they're provided by an independent trustee who have to act in the best interests of the beneficiary at all times. I see that Geoff's company use a firm called SMP Partners who I know, who are a firm of accountants/CSP/trust company over here, regulated by the IOM FSC, so I imagine it will be very similar.

It's an incredibly simple, incredibly effective structure, that gives the contractor a lot of protection.

[Fred Bloggs]

Well, I've never seen this before on a scheme website, but it's there -

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

Albeit in very small text right at the bottom of the page.