Bedouin Tax Solutions

[thebear14]

I have been called many things in my time, but an umbrella, reputable or otherwise, is definitely not one of them!

Yes, I meant the lady with the clue in her user name

Cheers I'll get in touch with her. Due to my ignorance in the past and the fact I only intended to contract a few months I've never explored the benefits of a Ltd v Umbrella. With travel to London from Edinburgh to now contend with I'm clueless as to what avenue to go down

[thebear14]

Uh huh. And how much did the person who recommended you get paid?

And how much tax have you paid to HMRC (not the same as fees to the provider)?

If you want a better retention then you could always go with this lot

Regarding the above, my daily rate is £250. For a working week bedouin pay a salary of £232.50, PAYE tax deduction of 15.20, NI 10.38 and employer NI of 12.22

[malvolio]

Regarding the above, my daily rate is £250. For a working week bedouin pay a salary of £232.50, PAYE tax deduction of 15.20, NI 10.38 and employer NI of 12.22

Great. So that only leaves £1017.50 undeclared income a week. What could possibly go wrong...

[thebear14]

Great. So that only leaves £1017.50 undeclared income a week. What could possibly go wrong...

Cheers for the constructive input, the question was asked about the tax deductions and I answered. Not 100% sure what else you expected to be honest

[LisaContractorUmbrella]

Cheers for the constructive input, the question was asked about the tax deductions and I answered. Not 100% sure what else you expected to be honest

I think Mal, in his own sweet way, is trying to warn you - essentially you have done the equivalent of taking 80 odd% of your income as 'cash in hand' - HMR&C are clamping down hard on this sort of thing at the moment so you can reasonably expect to receive a letter sometime in the future asking you when your loan was repaid and why you have not paid tax due.

[malvolio]

It's a neat illustration of the overall problem. The OP was sold a solution that he had no idea was in any way stpping outside the normal rules of UK taxation, all he saw was the best of a range of returns on his gross. Pointing out he's paying 3% tax on his income when the base rate is 20% should raise questions about exactly how that happens and what is likely to happen when HMRC get around to his case. Clearly it hasn't.

Am I bothered? Well no, not really. But you can see how the marketing of these schemes works so well, can't you.

[JamJarST]

Regarding the above, my daily rate is £250. For a working week bedouin pay a salary of £232.50, PAYE tax deduction of 15.20, NI 10.38 and employer NI of 12.22

You do realise if you go with an Umbrella you will be clearing a LOT less a week don't you?

[thebear14]

You do realise if you go with an Umbrella you will be clearing a LOT less a week don't you?

Yep, appreciate that however would rather be clearing less per week just now than be hammered for back taxes in the future

[thebear14]

I think Mal, in his own sweet way, is trying to warn you - essentially you have done the equivalent of taking 80 odd% of your income as 'cash in hand' - HMR&C are clamping down hard on this sort of thing at the moment so you can reasonably expect to receive a letter sometime in the future asking you when your loan was repaid and why you have not paid tax due.

Thanks Lisa, if they get in touch there's nothing I can really do about it now and just be thankful it's only been 5.5 months as opposed to years under the scheme like sum. Will just need to deal with whatever HMRC bring my way

[DonkeyRhubarb]

But you can see how the marketing of these schemes works so well, can't you.

Especially for the promoters charging 10% of gross income.

They are definitely not the mugs.