Is this the end for offshore umbrella companies??

[LisaContractorUmbrella]

WCS - all umbrella companies should work in the same way i.e. tax deductions through PAYE - if a scheme promises a higher net return than any of its competitors you have to ask yourself how?

[Old Greg]

Following HMRC's recent update on offshore employment intermediaries I asked for clarification on the changes to the legislation:

"Contractors join offshore umbrella company schemes in a bid to avoid tax – from what I have read, the updated legislation would make that contractual arrangement null and void as the full contract value (less agency margin) would be subject to PAYE and NIC’s. Therefore, the arrangement that had been entered into between the contractor and the offshore umbrella company would be pointless as there could be no possibility of the offshore umbrella offering any sort of tax saving. Is my understanding in this matter correct? “

A policy advisor confirmed that my understanding was quite correct.

What does the panel think?? Is this the end for the QC approved 90% take home offerings?

We both know that the 90% model has long ago died a death.

[LisaContractorUmbrella]

We both know that the 90% model has long ago died a death.

You would think wouldn't you but try typing Umbrella Company Take Home Pay into Google and see what it brings up - there are new companies making this sort of promise springing up all over the place

[Old Greg]

You would think wouldn't you but try typing Umbrella Company Take Home Pay into Google and see what it brings up - there are new companies making this sort of promise springing up all over the place

But they're all being out-competed by the 120% return model

[LisaContractorUmbrella]

But they're all being out-competed by the 120% return model

Any takers for that yet OG?

[Old Greg]

Any takers for that yet OG?

When I was marketing it in my signature, I did have three enquiries by PM.

[LisaContractorUmbrella]

When I was marketing it in my signature, I did have three enquiries by PM.

Please tell me you're joking

[Old Greg]

Please tell me you're joking

I promise you it's true.

[craig1]

We both know that the 90% model has long ago died a death.

I received a spam email from one of them this morning titled "Contractors - Retain 90% Of Your Income". UK "administration" office in Canterbury. It meets all the bingo words and phrases including "Senior Tax Counsel" approved, avoids IR35, fully insured, and so on

[Old Greg]

I received a spam email from one of them this morning titled "Contractors - Retain 90% Of Your Income". UK "administration" office in Canterbury. It meets all the bingo words and phrases including "Senior Tax Counsel" approved, avoids IR35, fully insured, and so on

Unless it has the terms "Oude Joris" or "Dutch Antilles", my advice would be not to touch it with a barge pole.