Anyone heard of BestPay alternative to Ltd company

[cojak]

Ever tried doing that for Contractor UK as a matter of interest?

Yes, but I'm not looking at handing over any hard earned dosh to CUK.

(and I always get the feeling that you're ticked that this site isn't Offshoreproviders UK )

[Dean HD]

BestPay

Hi,

I found the post after searching for any info on BestPay as I'm contracting through an agency and I'm at the juncture of registering Ltd or going through an Umbrella. I'm by no means an expert but I have contacted several co's who seem to use various routes through deductions - Some you have to send expenses in to and they pay you through minimum paye and take in account corporation tax etc... Bestpay pay through deferring income, something about a business loan etc.. As I say, I'm no expert. You are still responsible for class 2 around £10pcm, class 4 end of year and PAYE tax return which is based on the earnings not deferred..
The one mentioned SUS doesnt seem to equal as much take home as advertised.
I've decided to go with BestPay, though please let me know if you know of any issues with them

[cojak]

HM Revenue & Customs: Tempted by Tax Avoidance?

..and don't expect to be too successful if you go out looking for a contractor mortgage either...

[DaveB]

Hi,

I found the post after searching for any info on BestPay as I'm contracting through an agency and I'm at the juncture of registering Ltd or going through an Umbrella. I'm by no means an expert but I have contacted several co's who seem to use various routes through deductions - Some you have to send expenses in to and they pay you through minimum paye and take in account corporation tax etc... Bestpay pay through deferring income, something about a business loan etc.. As I say, I'm no expert. You are still responsible for class 2 around £10pcm, class 4 end of year and PAYE tax return which is based on the earnings not deferred..
The one mentioned SUS doesnt seem to equal as much take home as advertised.
I've decided to go with BestPay, though please let me know if you know of any issues with them

So you're going to sign up to a shceme you don't really understand, that doesnt appear to return what is claimed and that is of dubious provenance when it comes to the line between avoidance and evasion.

And you are going to give them all your money on the promise that they will give you most of it back.

And you will still be liable for unpaid tax when Hector comes calling because he didnt like the contents of your personal tax return.

And for all this you are going to give them an un-disclosed chunk of your earnings.

There is a reason the vast majority of contractors work though an Umbrella or go Ltd. If these schemes worked we'd all be using them and HMRC wouldnt have any interest in them.

[Clare@InTouch]

Hi,

I found the post after searching for any info on BestPay as I'm contracting through an agency and I'm at the juncture of registering Ltd or going through an Umbrella. I'm by no means an expert but I have contacted several co's who seem to use various routes through deductions - Some you have to send expenses in to and they pay you through minimum paye and take in account corporation tax etc... Bestpay pay through deferring income, something about a business loan etc.. As I say, I'm no expert. You are still responsible for class 2 around £10pcm, class 4 end of year and PAYE tax return which is based on the earnings not deferred..
The one mentioned SUS doesnt seem to equal as much take home as advertised.
I've decided to go with BestPay, though please let me know if you know of any issues with them

If you don't like sleeping well at night, have a very high appetite for risk and you stand to make an absolute fortune by using this scheme then I'd say go for it.

If you don't want to looking over your shoulder for the next 10 years and only stand to gain £5k a year then I'd recommend a limited company with a decent accountant to advise on making the most out of your taxes and expenses legitimately.

[DonkeyRhubarb]

If you use a loan scheme

this is what you can expect

HM Revenue & Customs: Contractor loan schemes

[Dean HD]

Thanks for the feedback guys but I have weighed up the options.
I'm on a short contract towards PAYE employment and I didnt want to form a Ltd co for such a period. Umbrella co's from what I can ascertain either work through onshore or offshore - you still need to invest a degree of trust in giving your money for clever accounting..

[northernladuk]

Thanks for the feedback guys but I have weighed up the options.
I'm on a short contract towards PAYE employment and I didnt want to form a Ltd co for such a period. Umbrella co's from what I can ascertain either work through onshore or offshore - you still need to invest a degree of trust in giving your money for clever accounting..

Wow, do you do your own research in to all this or do you ask your parrot?

[Dean HD]

Really?

Wow, do you do your own research in to all this or do you ask your parrot?

Is it really like this on this forum?

I have found myself being in the position of a contractor like (I assume) most others on here are.

My original post was not at all rude, I was merely stimulating debate for guidance.
Is this how new members are treated?

[CDJ]

Hi,

I found the post after searching for any info on BestPay as I'm contracting through an agency and I'm at the juncture of registering Ltd or going through an Umbrella. I'm by no means an expert but I have contacted several co's who seem to use various routes through deductions - Some you have to send expenses in to and they pay you through minimum paye and take in account corporation tax etc... Bestpay pay through deferring income, something about a business loan etc.. As I say, I'm no expert. You are still responsible for class 2 around £10pcm, class 4 end of year and PAYE tax return which is based on the earnings not deferred..
The one mentioned SUS doesnt seem to equal as much take home as advertised.
I've decided to go with BestPay, though please let me know if you know of any issues with them

Dean

I can only echo the comments already made here re these sorts of schemes. Take it from someone who has gone down this route previously. You are far far far better off, taking control of your own tax affairs and contracting via a Ltd company with a decent contractor specialist accountant. Yes you have the ball ache that is IR35, but IMHO thats a small price to pay for a much stronger certainty in your tax affairs.

Scheme promoters will tell you that these things work 100% - and sure they just might - there is some law to support it and no doubt you have a QCs opinion to support the view - but if you use such a scheme, I can pretty much guarantee you that HMRC will show up at some point down the road with a brown envelope challenging your arrangements and this will in all likelihood require you to go to the FTT and higher - You personally need to be prepared and comfortable with that fact.

My advice - get informed, get independant advice from a tax expert and only then make a decision.

Hopefully, the last few posts and links have already showed you what that is.