I know this has been discussed endlessly, but I phoned one of these today, without yet verifying what they said, they seem to have it prety wrapped up. Understand there may bean increased risk or HMRC investigation, but interested to know if any of you have been using these schemes for any length of time, and whether you have had any attention from HMRC?
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Do a Google on (a) BN66 Where people are looking at six figure tax bills, (b) Tract management, who have seemingly lost a few millions of someone else's money and (c) EBTs in general.
Still think it's a good idea?
Look, you know nothing. Learn your trade, then get clever with the money. You're not in a position to judge any of the more esoteric schemes.Blog? What blog...?
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I thought I might get this reaction, but I didnt ask if you thought it was a good idea, I'm doing my research, I asked if anyone on here would admit to using one for any more than a few months and if they got any extra attention for it.Comment
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Really fingers off. So you get 80% retention as opposed to 70% retention with a Ltd. Great 10% extra, trouble is when it goes wrong you lose everything. So imagine you've been in the scheme 5 years, if HMRC come after you, firstly you'll have sleepless nights for about 5 years, as the investigation and court cases churn on and then when you lose, you go personally bankrupt. This effectively means 10 years of your life has been thrown away....for 10% extra. Your marriage will probably also breakdown. Your choice.I'm alright JackComment
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There are lots of people (I'm not one) who have admitted to using one for more than a few months and not got any extra attention. Of course that is not long enough to judge whether it is effective.Originally posted by JoJoGabor View Post
There are also quite a lot of people on, for example, the BN66 thread who admit to using one and getting a lot of extra attention.
There have been a few previous threads where schemes have been unwound which has caused a number of people a few problems.
If you are comfortable with it, it's your risk. Certainly a blanket "it can't work" is wrong.Comment
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HMRC can go back retrospectively on offshore income; would you really want to live with the risk for the rest of your life?Originally posted by JoJoGabor View Post
Running a Limited company in the right way means you can still achieve between 80-85% take home, is an extra 5% worth it?
Obviously, being an accountant, I have never experienced working through an offshore company but I do deal with people who have come out the other end burned.Comment
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Just out of interest Daniel as your are a professional can you explain where the statement " HMRC can go back retrospectively on offshore income " is arrived at ? Presumably you are not referring to loans from trusts which you are bound to know are not considered income if structured correctly ( see EBT case law ) ? Could you also talk me through the 85% return from a Ltd. Co. without using a pension and putting the money out of reach for a considerable period of time ?Originally posted by Danielsjdaccountancy View PostComment
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I'm not here to cause debates amongst accountants, this site belongs to the Contractors and we're here to offer advice when they ask for it.Originally posted by geoff from contracta IOM View Post
BN66, offshore income etc is already well documented on this forum and contractorUK.
No doubt there are schemes which get around offshore income, for now, I'm simply stating that there are other entities you can contract through and still achieving a decent standard of living. That way not worrying about potential risks which some of my clients have experienced firsthand.Comment
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To answer the OP question….
Regarding the old EBT schemes (pre-dec 2009), some users did get a HMRC query letter, but I know of many who didn’t (going back as far as 2006).Comment
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