New contractor needs advice on best scheme

[LisaContractorUmbrella]

The OP is being reasonable - TS offer LTD entry into their scheme.

A newbie wouldn't know the difference or why it would raise suspicions.

Beg your pardon your Cojakness missed that on their site - think I was blinded by tears after cracking up at the 'HMRC approved' '90% take home'

[cojak]

Beg your pardon your Cojakness missed that on their site - think I was blinded by tears after cracking up at the 'HMRC approved' '90% take home'

Oh no, you read too much into their very carefully worded statement. It states that HMRC recognises that they are not a tax avoidance scheme. That isn't the same as being approved (although I'm sure that TS won't stop you from thinking that they're the same thing).

As I said in my 1st post, I'd get written proof that this is the case. It won't stop HMRC from coming to get you, but it might make you feel better if the lawyers get involved...

[LisaContractorUmbrella]

Oh no, you read too much into their very carefully worded statement. It states that HMRC recognises that they are not a tax avoidance scheme. That isn't the same as being approved (although I'm sure that TS won't stop you from thinking that they're the same thing).

As I said in my 1st post, I'd get written proof that this is the case. It won't stop HMRC from coming to get you, but it might make you feel better if the lawyers get involved...

Can't see that they would get anything other than they haven't declared the scheme to HMRC through DOTAS because their QC doesn't think they have to - as you rightly say, very different from 'approved' - can't get over the 90% though - although saying that I did see one the other day at 92.5%

[dezze]

To the unknowing, you can see how easily it is to get sucked in though. Insurance, clever QC's, 'approved' by HMRC, tested and won in court etc.... For many, the first time they know there's a problem is when the brown envelopes start dropping on the doormat.

Not that I'm saying this scheme is anything like that of course - please don't sue me.

[Taita]

Hmm, i smell a troll. or spammer. Unless you mean 450 per month, no way a client would part with 450 pd for someone your level.

Quite so!

[Taita]

To the unknowing, you can see how easily it is to get sucked in though. Insurance, clever QC's, 'approved' by HMRC, tested and won in court etc.... For many, the first time they know there's a problem is when the brown envelopes start dropping on the doormat.

Not that I'm saying this scheme is anything like that of course - please don't sue me.

As another poster said. The company has been established only a couple of years and does not appear to have any funds in the the accounts.

Beats me why any contractor would want to trust their hard earned cash to a company of such little visible substance without some very tangible guarantees in return.

[lucozade]

best advice I can give is - DO NOT TOUCH ANY SCHEME WITH A BARGE POLL. It's not worth the hassle for what may happen later.

Even if you think you are operating within the law, HMRC can, and have, come along later and used retrospective law changes to catch people. See here if you don't believe me:

http://forums.contractoruk.com/accou...ct-2008-a.html

Start up your own limited company, be nice, pay what's due on time and operate through a good accountant.

[LisaContractorUmbrella]

best advice I can give is - DO NOT TOUCH ANY SCHEME WITH A BARGE POLL. It's not worth the hassle for what may happen later.

Even if you think you are operating within the law, HMRC can, and have, come along later and used retrospective law changes to catch people. See here if you don't believe me:

http://forums.contractoruk.com/accou...ct-2008-a.html

Start up your own limited company, be nice, pay what's due on time and operate through a good accountant.

Or work with a decent umbrella company