I always knew we were right....

[Ondine]

No.

HTH

BrilloPad, That can't be right. All the news points to lenders tightening up their lending criteria and the FCA coming down on lenders who do not assess affordability based on sound evidence.

Are you saying there are lenders out there that are willing to use invoices only? Not accounts, P60 or tax returns?

Or are they simply using their contract rate to get assessed on their affordability. Perhaps one of the mortgage specialist on this forum knows?

[cojak]

That's assuming that they're using a Limited Company, but most aren't. In the majority of cases, the payment made in the form of a loan trust is paid directly into their personal bank account.

That's a very bold statement (and one that I do not believe is true).

From what source does this 'fact' appear? I'll be quite happy to accept it if it's credible.

[Ondine]

That's a very bold statement (and one that I do not believe is true).

From what source does this 'fact' appear? I'll be quite happy to accept it if it's credible.

Just from talking to other contractors on these schemes and contacting quite a few providers a year ago.

Some of the providers I spoke to a year ago recommended a scheme called "Business Benefit Trust" or "Sole Trade Trust". I think that's what they referred to them as. They suggested that I received two payments, one small payment (Minimum wage around £10K) and the remaining part of my income in the form of a loan trust paid directly into a personal bank account (Not a limited company account). I was to operate in a self employed capacity NOT employee.

I spoke to a number of different providers, they included:

Sanzar
Darwin
Best Pay
AML
Halo
Offshore Umbrella

I decided that this was NOT for me. Too dodgy.

[Ondine]

That's a very bold statement (and one that I do not believe is true).

From what source does this 'fact' appear? I'll be quite happy to accept it if it's credible.

May be Lisa from ContractorUmbrella can comment. I'm sure she can shed some light on this subject.

[cojak]

Just from talking to other contractors on these schemes and contacting quite a few providers a year ago.

Some of the providers I spoke to a year ago recommended a scheme called "Business Benefit Trust" or "Sole Trade Trust". I think that's what they referred to them as. They suggested that I received two payments, one small payment (Minimum wage around £10K) and the remaining part of my income in the form of a loan trust paid directly into a personal bank account (Not a limited company account). I was to operate in a self employed capacity NOT employee.

I spoke to a number of different providers, they included:

Sanzar
Darwin
Best Pay
AML
Halo
Offshore Umbrella

I decided that this was NOT for me. Too dodgy.

Right, so talking to a handful of contractors based at a single client (I presume) you feel confident to make a sweeping statement regarding most contractors using loan schemes.

It might amaze you to learn that scheme providers do get pushed through some agents. And also that other contractors experiences regarding their colleagues is completely different.

I don't know anyone in real life who would admit to using one of these schemes, most use their own Ltd and some use umbrellas.

Just to clear that up.

[Ondine]

Right, so talking to a handful of contractors based at a single client (I presume) you feel confident to make a sweeping statement regarding most contractors using loan schemes.

It might amaze you to learn that scheme providers do get pushed through some agents. And also that other contractors experiences regarding their colleagues is completely different.

I don't know anyone in real life who would admit to using one of these schemes, most use their own Ltd and some use umbrellas.

Just to clear that up.

Hi Cojak, point taken, it did sound like a sweeping statement, which is not very professional.

Yes a number of contractors that I spoke to were based at a single client, that is true. But I have also attended a number of seminars and events held by PCG which included specialist accountants and other contractors that discussed how these schemes operated.

Most of the schemes that they discussed operated through Umbrellas.

But I appreciate the point you are making.

[Vallah]

Trustees of offshore schemes will ONLY pay into bank accounts belonging to the individual for the loan element.

[Ondine]

Trustees of offshore schemes will ONLY pay into bank accounts belonging to the individual for the loan element.

Are you saying that contractors on these schemes can only receive the "loan trust" element of their earnings into their individual personal bank account, rather than their business bank account? Because that was the general impression I had until Cojak's comments above.

[Ondine]

That's a very bold statement (and one that I do not believe is true).

From what source does this 'fact' appear? I'll be quite happy to accept it if it's credible.

Trustees of offshore schemes will ONLY pay into bank accounts belonging to the individual for the loan element.

I rest my case.

[eek]

Hi Cojak, point taken, it did sound like a sweeping statement, which is not very professional.

Yes a number of contractors that I spoke to were based at a single client, that is true. But I have also attended a number of seminars and events held by PCG which included specialist accountants and other contractors that discussed how these schemes operated.

Most of the schemes that they discussed operated through Umbrellas.

But I appreciate the point you are making.

Its actually quite simple, they are not umbrellas they are offshore/onshore tax schemes that may or may not masquerade as umbrellas.

They are not however umbrellas because they don't pay everything as PAYE.