Sunday Solutions Anyone?

[stevenMC]

Hi,
I am with Sunday solutions and have just completed my years tax return.

I would highly recommend them, for various reasons

[Denny]

You might have to wait a while then. If they are setting up a series of LLPs between disonnected parties, they are clearly doing so with the intention of avoiding tax artificially, which puts them in Hector's gunsights and so should be thought about very carefully.

Secondly, and rather more importantly, if your contract is IR35 caught then not paying 95% of gross as salary and the associated PAYE/NICs is evasion, which is seriously illegal. The very fact they are trying to tell you they can do so is a very good reason to walk away and do it properly.

So stop being dumb and listen to what you're being told.

Not necessarily. Your stance 'intention of avoiding tax artificially' is a misnomer. You can't do this. Every time I put money into my ISA account I'm avoiding tax deliberately, but that is legitimate, as are all avoidance measures. The issue about contractors using MSCs, offshore schemes and other dispensation generous brollies is that Gordo is now re-evaluating all tax avoidance measures and is now calling them evasion.

Whether this scheme is legit' is quite another matter, but they could just be exploiting another legit tax loophole Gordo hasn't got on his radar scheme, or else be helping contractor evade tax which is a different matter and clearly illegal. Frankly, any scheme that does the latter would be seriously stupid as it would have to involve siphoning off sums of money left untaxed which should be declared on your tax return.

[malvolio]

I disagree. It has been said several times by the Gorgon and the Prawn, that they are after arrangements that exist merely to avoid paying taxation. While such things are not illegal per se, as we all know, the risk of deliberately having Hector take an interest in them is probably not a good business decision. Given that most of the people saying they are a good thing routinely show a remarkable lack of knowledge of the whole area is another reason to stay away.

[premiere]

I disagree. It has been said several times by the Gorgon and the Prawn, that they are after arrangements that exist merely to avoid paying taxation. While such things are not illegal per se, as we all know, the risk of deliberately having Hector take an interest in them is probably not a good business decision. Given that most of the people saying they are a good thing routinely show a remarkable lack of knowledge of the whole area is another reason to stay away.

I have a several friends who are also contractors.

Most of us (me included) run our own LTD co's. However, some operate using umbrella co's. One in particular used to use a UK based umbrella and then was 'made aware' of a scheme through someone esle, where he is paid via some 'isle of man' type thing.

He is on 425 per day, yet is 'paid' only 20k per year (well, that's what he pays tax on). He then receives the rest as a seperate payment. It calulates that he retains 84.99% of his income and also doesn't incur Employers NI.

I have no idea how this works and am sure it's iffy...so I am happy running my own ltd.

Anyway, the point of this info is that very quickly after he joined the scheme, he got a letter from hector, basically saying...'listen hear sunshine, you cannot do this'.

He then called this new umbrella company who asked for a copy of the hector letter. Their lawyer reviewed it and then wrote to hector themselves, explaining what is happening. My friend then got another letter from hector, acknowledging that he can continue what he is doing.

My feelings...my friend is well and truly on hectors radar now and no doubt they will be sniffing round for ages...LTD is the only way to go.

[cailin dana]

Just 'cos he is on the radar doesn't mean there is anything wrong with what he is doing.

HMRC might not like it, but if the loophole is there..... it's their tough s**t for not writing the legislation properly in the first place!!

[pisces]

Hi,
I am with Sunday solutions and have just completed my years tax return.

I would highly recommend them, for various reasons

And these are.................??

[LordF]

I have a several friends who are also contractors.

Most of us (me included) run our own LTD co's. However, some operate using umbrella co's. One in particular used to use a UK based umbrella and then was 'made aware' of a scheme through someone esle, where he is paid via some 'isle of man' type thing.

He is on 425 per day, yet is 'paid' only 20k per year (well, that's what he pays tax on). He then receives the rest as a seperate payment. It calulates that he retains 84.99% of his income and also doesn't incur Employers NI.

I have no idea how this works and am sure it's iffy...so I am happy running my own ltd.

Anyway, the point of this info is that very quickly after he joined the scheme, he got a letter from hector, basically saying...'listen hear sunshine, you cannot do this'.

He then called this new umbrella company who asked for a copy of the hector letter. Their lawyer reviewed it and then wrote to hector themselves, explaining what is happening. My friend then got another letter from hector, acknowledging that he can continue what he is doing.

My feelings...my friend is well and truly on hectors radar now and no doubt they will be sniffing round for ages...LTD is the only way to go.

I am also on that same ISLE OF MAN scheme and have had no letter from HMRC about it and can confirm that I get 80% of the gross billed amount. HMRC may sniff as much as they like!

[cojak]

Hi,
I am with Sunday solutions and have just completed my years tax return.

I would highly recommend them, for various reasons

Like you being the MD/Head of Sales, you mean?

[MobileCheese]

I have mates who used to do foreign loans schemes, one of them is being chased for £100k now and one for £60k. My point is IMO the foriegn loan schemes at the time they were running were kind of viewed in the same way as the Isle Man Schemes are now in terms of risk, and now look whats happened.

Its a risk you take and you have to be comftable with the level of it.

The bottom line is IMO I do not believe the vast majority of people who run these schemes would really care once they IR come a knocking, it would be your problem. They are in business to make money not look after you IMO

[cojak]

The bottom line is IMO I do not believe the vast majority of people who run these schemes would really care once they IR come a knocking, it would be your problem. They are in business to make money not look after you IMO

Couldn't have put it better myself.

Take note all of you asking this question.