The stuff you need to know about loan schemes......

[geoff from contracta IOM]

Still can't answer a straightforward question then Geoff? Also, you may like to read the forum rules before becoming abusive.

Sorry, the simple answer is no circumstances, S58 stopped the use of DTA from having any benefit. I would have thought it was obvious. As for being abusive, I do find it extremely annoying when the ill informed and unqualified offer advice, especially if they are offering it on subjects well beyond their professional knowledge.

[porrker]

Stuff you need to know...

It is a shame this thread has started off in such a negative way. A number of posters have recently been asking for advice on these schemes.

If you are thinking of entering a scheme ensure you contact the provider and have a face to face conversation on how the scheme works. Get some understanding of the current HMRC Anti Avoidance legislation and ask why the scheme falls outside the legislation and make sure you understand it. Don't get taken in by talk of HMRC compliance and Tax Barristers. Understand who you actually work for and how you get paid. Find out about Tax investigations and which accountants the scheme provider partner with. Also do some digging regarding the people behind the scheme check companise house it's amazing what you find... Check out how the offshore structure work e.g. if it's IOM find out how IOM companies operate and how they report again this sheds some light on how they work.

And lastly do check out some of the threads on here there are some horror stories. You will not find many threads were people talk openly how these schemes work as the users are probably under NDA so you will have to do your own research.

Just my starter for 10 but hope it helps.....

[cojak]

I told you this may get embarassing

No, I promise you, it won't get embarrassing.

It may be short though...

[cojak]

It is a shame this thread has started off in such a negative way. A number of posters have recently been asking for advice on these schemes.

If you are thinking of entering a scheme ensure you contact the provider and have a face to face conversation on how the scheme works. Get some understanding of the current HMRC Anti Avoidance legislation and ask why the scheme falls outside the legislation and make sure you understand it. Don't get taken in by talk of HMRC compliance and Tax Barristers. Understand who you actually work for and how you get paid. Find out about Tax investigations and which accountants the scheme provider partner with. Also do some digging regarding the people behind the scheme check companise house it's amazing what you find... Check out how the offshore structure work e.g. if it's IOM find out how IOM companies operate and how they report again this sheds some light on how they work.

And lastly do check out some of the threads on here there are some horror stories. You will not find many threads were people talk openly how these schemes work as the users are probably under NDA so you will have to do your own research.

Just my starter for 10 but hope it helps.....

Yes, it does. Thank you porrker.

Because if you get it wrong..... http://www.heraldscotland.com/news/c...cheme.17812606

[ChimpMaster]

What is frightening about any such #scheme# is that the provider can pretty much always run off scot-free. The onus for any unpaid taxation falls on the individual, with the investigation having been triggerred from their Tax Return.

I was briefly with an 'Employee Loan' provider some years back. They were only in operation for around 5 years, during which time they ran 3 different offshore companies, with the objective of spreading the risk and also moving 'employees' from one company to another after a couple of years to cut down BIK tax liability. They used one Trust to give your own earnings back as loans, and then a completely different Trust would eventually just 'give' you the funds to pay off this loan (like a good mate would...).

It was all too convoluted and contrived for me and just didn't feel right, so I left within a few months.

A small number of their contractors soon became entangled in HMRC investigations and the customary 'we are here to support you' emails were sent out from the provider.

And then nothing. And all trace of the 3 companies has disappeared from the web. Well, apart from a couple of threads on CUK

So much for their support - the contractors are left to fight their own long, drawn out battles with HMRC and they will no doubt be left with a large tax bill.

Personally, what I've learned is that the extra 10% or whatever is just not worth the risk. And why be so greedy? As a contractor with a Ltd, you can still achieve a decent return on revenue after tax.

Draw the line, and be happy with what life has given you.

[BrilloPad]

Morning Lisa,

Can you please let us know which scheme provider(s) have issued letters reclaiming the debt?

thanks

Redding

None that is why I am so annoyed , people spouting nonsense with nothing to support their claims

Redding.

So are you going to tell us why loan schemes are so naff then?

I am still waiting. Or do you think loan schemes have merits?

[geoff from contracta IOM]

It is a shame this thread has started off in such a negative way. A number of posters have recently been asking for advice on these schemes.

If you are thinking of entering a scheme ensure you contact the provider and have a face to face conversation on how the scheme works. Get some understanding of the current HMRC Anti Avoidance legislation and ask why the scheme falls outside the legislation and make sure you understand it. Don't get taken in by talk of HMRC compliance and Tax Barristers. Understand who you actually work for and how you get paid. Find out about Tax investigations and which accountants the scheme provider partner with. Also do some digging regarding the people behind the scheme check companise house it's amazing what you find... Check out how the offshore structure work e.g. if it's IOM find out how IOM companies operate and how they report again this sheds some light on how they work.

And lastly do check out some of the threads on here there are some horror stories. You will not find many threads were people talk openly how these schemes work as the users are probably under NDA so you will have to do your own research.

Just my starter for 10 but hope it helps.....

All good advice, the reality is it is too soon for any provider to have gained a full understanding of the implication of the GAAR consultation released yesterday. As soon as I have a response from our tax counsel I will share it for all ( good or bad )

[geoff from contracta IOM]

Redding



Redding.



I am still waiting. Or do you think loan schemes have merits?

Not sure I follow BP ? What are you asking me exactly ?

[BrilloPad]

Not sure I follow BP ? What are you asking me exactly ?

As per this post below.

So are you going to tell us why loan schemes are so naff then?

And please try to remember that that this is Accounting rather than General. If you want to have a pop at me (or anyone else) then please do it in general. Its a serious question.

[sal626]

What does "Redding" mean?