Contracts Using loanback schemes

[Dionysos]

Hi - I am relatively new to contracting and just about to start a new contract. I have been contacted about the tax efficient method through which you pay money into a company in Jersey and then borrow from it to reduce tax liability. The admin fee is approx 11%. Does anyone know anything about these schemes ? Are they worthwhile ?
Thanks,

[northernladuk]

<sigh>
This is the business/contracts section. We have an accounting/legal section. Why did you not post it in there...

If you had you would have seen a sticky titled 'The stuff you need to know about loan schemes...... '

Also check the Welcome/FAQ part of the forum. There is a search sticky in there that will help you find any other information on this topic that has been discussed before.

You need to do a bit better than this when deciding to embark on a system that could put your livelyhood at risk should it go wrong.....

[captainham]

I often wonder what sort of person would voluntarily sign up for these types of schemes, and whether it was through ignorance or pre-planned avoidance...now I have the answer!

[BlasterBates]

Absolutely not, you will be investigated and the legal wrangling could go on for years.

Do you really want to through a legal battle with HMRC?

Have you ever been through a legal battle?

Don't do it.

[Pondlife]

Dionysos, ignore these neighsayers and poo pooers. Fill yer boots. Get stuck in. You need to get the contractor mindset of my game/my rules.

Who cares if you get investigated and dragged through the courts by the Taxman. You're a contractor dammit. with the rates you'll earn you'll be able to afford the best lawyers in the country.

[TestMangler]

I'm working with two contractors just now who are pretty smart and well rounded individuals, other than the fact that they're using an offshore loan scheme. I've talked to them about it several times and both just keep repeating that it's 'risk free'. They're not new to contracting and won't listen to any advice to the contrary.

Takes all sorts I suppose.

[SueEllen]

I'm working with two contractors just now who are pretty smart and well rounded individuals, other than the fact that they're using an offshore loan scheme. I've talked to them about it several times and both just keep repeating that it's 'risk free'. They're not new to contracting and won't listen to any advice to the contrary.

Takes all sorts I suppose.

Some people only learn from having their own lives wrecked.

You just have to hope you aren't around/in touch with them to see/hear it happen.

[stek]

I know someone (not in IT) who has never paid a penny tax - has a company based in Belize all his income goes through which he thinks makes him invulnerable.

Well, he's survived for 15 years now at least, seems impervious.....

[Ruprect]

<sigh>
This is the business/contracts section. We have an accounting/legal section. Why did you not post it in there...

If you had you would have seen a sticky titled 'The stuff you need to know about loan schemes...... '

Also check the Welcome/FAQ part of the forum. There is a search sticky in there that will help you find any other information on this topic that has been discussed before.

You need to do a bit better than this when deciding to embark on a system that could put your livelyhood at risk should it go wrong.....

Have you turned over a new leaf?

[Rabotnik]

I know a guy who has been contracted to the same client for about 8 years, and to avoid IR35/tax he works sub-contracted to his father's UK company (whom the client pays), while his own company is registered in Italy. He works from his home in Italy 3 weeks out of 4 after he moved there a few years ago. Had no qualms about putting his big screen LCD TV through the company either