Help - The umbrella i work through is not paying me and has closed down !

[geoff from contracta IOM]

contractor tax solutions

It seems a website has sprung up advertising for former Tract contractors but he won't tell you who the solution provider is ! seems he is just helping out his mate cause he is such a nice guy ? Be afraid very afraid !!!!

[malcyp]

Helpful info to some i hope

Yes of course..... I'm also affected by this <mod snip>

You could change your umbrella company at anytime unless you've contractually agreed not to. (which I'd suggest is highly unlikely). Couple of admin loops to go through & that'd be it. What the immediate priority needs to be is to ensure you suspend any outstanding invoices that are due to be paid to Tract by your agency...
madAny funds already transferred to them will be gone though....

I was with tract for a few months - they always seemed very efficient - the guy that put me onto them was with them for 6 years with no payment problems at all - i was lucky when they crashed cause they had not pulled my money across from my agency - the agency advise they just need to set me up with a new contract for my ltd company or new umbrella from the date of the last tract payment and they will pay whats due for the last 2 months so dont worry about getting your money from your agency BUT ONLY IF ITS STILL WITH YOUR AGENCY

[geoff from contracta IOM]

can anyone tell me how their scheme worked i'm struggling to work it out

[Steven@Parasol]

can anyone tell me how their scheme worked i'm struggling to work it out

I've been writing a white paper on various schemes and I can't for the life of me work it out either.

[geoff from contracta IOM]

I've been writing a white paper on various schemes and I can't for the life of me work it out either.

Hopefully not for HMRC Steven ?

[northernladuk]

Have any of you affected guys actually thought to ring HMRC, Companies house and even the fraud squad/police with all this information or is everyone waiting for someone else to do it?

[Pondlife]

Have any of you affected guys actually thought to ring HMRC, Companies house and even the fraud squad/police with all this information or is everyone waiting for someone else to do it?

I'm pretty sure HMRC are the last people they will want to call.



meaning rolling eyes rather than sarcastic.

[ChimpMaster]

can anyone tell me how their scheme worked i'm struggling to work it out

I'm not involved with Tract but I believe they were using the ol' devaluing currency FX transaction scheme. Given the somewhat questionable character of the management, I doubt that they ever transacted any FX trades, so it is likely that the whole scheme was one huge elaborate scam.

This would of course leave the participants in even more of a precarious position.

[Pondlife]

I'm not involved with Tract but I believe they were using the ol' devaluing currency FX transaction scheme. Given the somewhat questionable character of the management, I doubt that they ever transacted any FX trades, so it is likely that the whole scheme was one huge elaborate scam.

This would of course leave the participants in even more of a precarious position.

WCMS. Based on the linky to the 2006 post.

Was surprised to see Denny (remember her ) involved in that sort of malarky.

[ChimpMaster]

I remember someone (another contractor) sending me this a couple of years ago:-

-=======================================-

Hi

Thanks for expressing an interest to join Worldwide IT Corporation the only members only Umbrella company for exclusive clientele.

Currently we have over 950 contractors working at JP Morgan, Goldman Sacs, O2, BT,Unisys, Scottish Parliament e.t.c. Our contractors range from:

Home Office worked
MoD
Lawyers
Plastic Surgeons
Doctors
IT Contractors
Engineers

We have a simple maximising revenue approach to high earning contracts using a scheme which is IR friendly as well as maximising net income.

Please see attached example spreadsheet showing you what we could offer you a month if you decided to join us. If you joined us we would give you between 85-87% of your gross.

How we work:

Worldwide IT Corporation is a offshore company which will act as your fulltime
employee. They hire all the UK activities to a UK Management Company .

Tractmanagement Ltd is the UK management company who will be dealing with all UK
affairs on behalf of Worldwide IT Corporation. They will be the ones invoicing your
agencies, collecting funds and relaying it back to the offshore company.

Worldwide IT Corporation pays you in three ways:

PAYE (which is taxed at the current UK rate and can be any figure you want, this is paid monthly)
FOREX (TAX FREE, this is paid 6 weekly as it is important it is not seen as a salary payment)
EXPENSES (which is not subject to tax or NI deductions this is paid monthly on the 15th and 30th of each month)

This unique set up allows you to receive a vast proportion of your income to
the maximum benefit, paying the minimum tax .

Please see Google for more details.

Please note as all your payments are given to you via a offshore company it is out of the
jurisdiction of the UK tax system, hence doesn't need to be declared. Only
the PAYE and expenses portion will be declared and we do that on your behalf.

We have been running for almost seven years now and have never been confronted
by Inland Revenue. Also please note this is NOT an EBT scheme.

We will be doing all the tax, NI deductions, P46 , P45 , P11d and P60 ,
basically doing all the jobs your accountant does.

You will now need to tell your agency you will be joining Tractmanagement Ltd a Payroll Umbrella company and
forward them the details form. WE ADVISE OUR CONTRACTORS NOT TO DISCLOSE TO THERE AGENCIES/CLIENT THEY ARE USING OFFSHORE STRUCTURES, AS AGENCIES/CLIENTS DONT LIKE UMBRELLA COMPANIES WITH OFFSHORE AFFILIATES. PLEASE REMEMBER IT IS YOUR CONTRACT WITH THE OFFSHORE COMPANY THE AGENCY CONTRACT IS WITH US.

I attach a joining pack for you to fill and fax back to 01753 533269 or post
to:

Tract Management Ltd,
268 Bath Road
Slough
Berkshire
SL1 4DX


Please note the Contract of Employment is a standard contract and is only used to make your agency contract IR35 friendly, we do not pay sick days, bank holidays if your agency dont, nor do we honour the grievance procedure speculated in our Contract of employment. (the only grievance / notice period honoured is one which is speculated in your Agency Contract which your agency will send directly to us) . We must have these points highlighted in our Contract of employment in order to make our set up legally viable.

I also attached an employee details form which needs to be filled and sent/faxed back also.


Still not sure:

We are the only Umbrella company whom have a contract with Barclays re Pension funds and Mortgages.

This means if you decide you want to contribute to a pension through us we will put you in touch with our contact at Barclays who can organise that and advise of the best pension fund.

Alternatively if you need to get a mortgage , we have a contact at Barclays whom can organise that. The benefits of that : You would have to do minor work as Barclays would liaise with us directly to organise the supply of payslips, contracts of employment and proof of the FX you are receiving which are classed as "guaranteed bonuses".

Most importantly we are responsible for all the tax and NI not you, and as a result we have £10,000,000 cover of insurance in place.

Please do not hesitate to contact me on 01753 725489 if you require further details.

Thanks

Sharon Corr
Consultant