Cold calls from Aston Mae and Rouseau International

[andrewjsimpson1]

Hi
I'm a LTD company contractor and recently received calls from representatives of two companies, Aston Mae and Rouseau International.
They advise me that the optimum and legal way for me to trade is as part of an LLP (Limited Liability Partnership). They handle the invoicing I just receive the return which they say is 84% of the of my invoice. They say it is legal and that they warranty the operation against any queries from the inland revenue.
I get paid from 3 points.
1) A visa card that gets charged with 10% of everything due (ie 10% of the 84%)
2) Earnings, which is at 60 pounds per day worked.
3) A separate payment for the remainder of the 84% from a Zurich account.

I believe these reps get a finders fee for guiding me to the LLP.

The only problem is, that as plausible as they sound I can not find any information regarding its legitimacy.
I made contact with an independent accountant, who advised that it was most likely technically legal. He thinks they may be paying me via a loan. However the Taxman is trying to stop such practices.
My own accountant dismissed the scheme as impossible.
I reffered this independent advice back to Aston Mae who retort that it was not a loan and that it is legitimate.

I've bailed out and gone back to ltd company operating. Has anyone any knowledge of it.

Has any one any better knowledge of this type of operation.

thanks

[NotAllThere]

...I made contact with an independent accountant, who advised that it was most likely technically legal...

So you've sought independent expert advice and the advice is don't do it. So why are you posting here - you'll only get the same advice. Don't do it.

[eek]

So you've sought independent expert advice and the advice is don't do it. So why are you posting here - you'll only get the same advice. Don't do it.

I usually add a bit more nowadays:-

1) When HMRC eventually find out about the payments they will treat you as if you were PAYE. Even before penalties the amount in tax owed will be more than you would legitimately pay in tax via a limited company and after penalties far far more.

2) are you sure its not an artificial device for saving tax. If it is then when HMRC find out you've used it they won't be happy and will try to enforce penalties and quick payment.

3) you only have to look at http://forums.contractoruk.com/accou...ct-2008-a.html and HMRC Scheme Enquiries to see the stress HMRC will happily inflict on you. There have been divorces and suicides....

4) By the time they take their percentages do you really think you would be any better off given the possible issues mentioned in 3.

Strangely I don't get the calls anymore. I think making the last two salesmen cry as I explained exactly what misery other scams had caused possibly had a lot to do with that...

[cojak]

But thanks for letting us all know what they are getting up to these days.

[BlasterBates]

No scheme will allow you not to pay tax without a decade long battle with HMRC.

Always remember that, in the unlikely event that it is legal, you and all the people with you in the scheme will have to fund a very expensive legal team to find out.

HMRC now use a simple argument in their challenges, if the money is yours to do with as you wish, i.e. you select an intermediary, HMRC say it's income before it gets to the intermediary, and therefore is taxable at that point. I don't see how any scheme can win that argument.

Is it worth it?

Absolutely not.

[eek]

Are they actually pocketing 16% and only paying you 84%.

Given that I can legimately take over 80% as income via a limited company and more if I put bits of it in a pension why would you bother...

[craig1]

I posted a very long reply to a similar subject a while ago, but in summary: Unless you're going into business with individuals you can 100% trust, and even then be careful, avoid becoming a member of an LLP like the plague, the consequences of it can be quite scary and EVERY member of the LLP is subject to the same consequences if there's wrongdoing.

Also, remember that these "warranties" given by the companies are promises backed up by a limited company based abroad. Even if you can get to them abroad legally, all they need to do is "phoenix" the company and they can walk away with you holding a bit of paper that says the now dead company warrants that it's a legal scheme.

[TykeMerc]

If it looks too good to be true it undoubtedly is.

The approach you describe is clearly and obviously artificial it will attract HMRC's attention and anyone using the scheme will no doubt end up with a long and nasty case to defend.
The scheme providers will of course claim that it's legitimate and will never result in any nasty fallout, but they're in it to make money for themselves so they really don't give a damn if down the line you get stitched up for all the unpaid tax, NI and penalties.

Avoid like the plague.

[Waldorf]

I thought I had read something about the use of LLP's for this sort of tax dodge were being outlawed, although I have not really looked into it as I have no intention of using such dodgy schemes.

I would avoid these schemes like the plague, have you not been watching the new lately, these high risk schemes are very risky.

BTW - The actual tax you will pay is very small, probably 1-2%, the rest of the 16% dedution is retained by the scheme provider as their fee and commission to introducers, such as agencies, accountants etc.

[TykeMerc]

Oh as well as the astronomical risk profile of any tax avoidance scheme, there's the not insignificant issue that some agencies will not contract people using LLP's (allegedly) so you've that potential problem too.