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

[Bones]

How would you be better off with this?

You borrow £25K and then you pay it back? is this not just the same as you would do with HSBC, Barclays, NatWest etc?

Stick to the day job I think!

Except your paying a loan back with money that has never been taxed.....like all loan schemes.....!

[dezze]

Except your paying a loan back with money that has never been taxed.....like all loan schemes.....!

I think you may have missed the point on how these schemes work

[Bones]

I think you may have missed the point on how these schemes work

You may well be right, I am still trying to find a decent explination of how they are meant to work

[BlasterBates]

You may well be right, I am still trying to find a decent explination of how they are meant to work

The argument against the scheme is if you receive a loan that you never pay back, is it actually a loan.

The Rangers football club ended up paying tax on loans to their players because there was proof that players wouldn't have to pay it back.

So be warned!

[mj62]

For those who were on a loan scheme but have since moved on, is there any type of insurance that can be purchased to cover you in case HMRC comes knocking?

Either to cover any representation costs (hopefully handled by MontP or whomever) and also to cover any lump sums that HMRC may ask for?

Thanks,
MJ

[DigitalUser]

Remuneration trusts

Appreciate this has been discussed before but does anyone think remuneration trusts are ok prior to the GAAR legislation being enacted? Not heard it mentioned specifically (although it would arguably fall under anti-avoidance rules per se) so this is more a curiosity. FYI I have a limited company setup and am outside IR35 so no desire (yet) to go to the dark side

[Waldorf]

I don't think they are naff , I obviously represent one. What lifespan they have following the GAAR consultation published yesterday is too early to say, I will be honest though when I get an updated opinion.

Geoff - any update on whether the GAAR will be an issue for you?

[geoff from contracta IOM]

Post GAAR

Geoff - any update on whether the GAAR will be an issue for you?

Looks like some changes will be required, we should have the final detail in the next 4 weeks.

I think it's fair to say that almost all providers will need to take a radical look at their structures but there appears to be a way forward for the industry to continue to provide high retentions post GAAR.

[PhilBreeze]

For those who were on a loan scheme but have since moved on, is there any type of insurance that can be purchased to cover you in case HMRC comes knocking?

Either to cover any representation costs (hopefully handled by MontP or whomever) and also to cover any lump sums that HMRC may ask for?

Thanks,
MJ

I'm not aware of any insurance companies that specialise in unanticipated tax liability, but you can insure almost anything with some companies/brokers (HowStuffWorks "9 Odd Things Insured by Lloyds of London"). Bespoke insurance will cost more than mass-marketed insurance because the costs of working out the risk for one case is going to be higher than for many, but it may still be affordable for you?

Legal expenses insurance is widely available - although not all policies cover tax investigations.

[LisaContractorUmbrella]

For any one who's interested - the new Tax Avoidance Schemes (information) Regulations 2012 http://www.legislation.gov.uk/uksi/2...0121836_en.pdf Coming into effect next month