Bin Ltd co ?

[geoff from contracta IOM]

82%

82% sounds low it should be around 85 + if they are using the same model as us. Do check what your accountant is getting in fees as I suspect on this retention about 5%+ ?

[Taxless]

Been offered a pretty good umbrella with 82% retention, can I just settle my bills with HMRC etc and close my co ?

Your accountant should be delivering this advice as part of his offering. Whether you ditch the company or not will depend on a number of factors, including how much cash you may have left sitting in it.

It's offshore,Jersey,and loan based. My accountant suggested it and he's been pretty straight so far.

Check with your accountant. I suspect that you are wholly UK based and your accountant would probably be happier if you weren’t disclosing details about what you are signing up to until you are completely clear about it.

He's doing himself out of a job though. Ahh, ask him how much his referral fee is...

This should be disclosed at the time of signing up. I’m not sure if the suggestion is that the accountant should not get a fee for providing access to a solution, but if so, then that is just unrealistic. Whether he is providing value for money is another matter that only the individual can decide.

82% sounds low it should be around 85 + if they are using the same model as us. Do check what your accountant is getting in fees as I suspect on this retention about 5%+ ?

I don’t have any knowledge of your model, but I think in this field, it is not just about return, but also about how satisfied you are that the model is robust enough to protect your position as an individual.

[NotAllThere]

82% sounds low it should be around 85 + if they are using the same model as us. Do check what your accountant is getting in fees as I suspect on this retention about 5%+ ?

There you are. Even such scheme promoters are suggesting it's a bad idea.

[geoff from contracta IOM]

There you are. Even such scheme promoters are suggesting it's a bad idea.

Think you may have got at bit carried away with reading into my post there !!!

[meanttobeworking]

Speaking from experience...

I used to be in one of those schemes, and I'd politely suggest you avoid it. Remember they are offering 82% of your ex-VAT day rate - if you run a ltd and register for VAT and the Flat Rate Scheme, you'll likely match/approximate that return anyway, unless you end up working on your own doorstep and have no expenses. And even if it's a little less, IMO it's not worth the worry it creates.

Use a LTD and worry about IR35 instead

[geoff from contracta IOM]

Use a LTD and worry about IR35 instead [/QUOTE]

There lies another problem which those so keen on calling schemes such as mine risky omit to mention, you will retain less of your income with your Ltd. Co. and run the gauntlet with IR35 and still might end up with a VAT and or Revenue inspection to go with it. I think it's rather niave to pretend to yourself that just because you operate a My Co. it's plain sailing and 100% risk free if it was you would not be in business technically and that really would cause IR35 issues !

[BlasterBates]

It's stress free until you get a brown envelope with your name on it, no not the Umbrella company or your accountant, YOUR name.

You see when the sh*t hits the fan the baliffs will come to YOUR place because it's YOUR tax liability not theirs.

Wouldn't touch it with a barge pole, sounds dodgy.

[NotAllThere]

The IR35 risk is massively overstated there. The brown trousers over the brown envelope isn't.

Whether the umbrella is encouraging you to indulge in risky activity or not, I'd still recommend not using them, on the grounds that you're giving a third party control of your money. It's risky enough when the only third party is your bank!

[craig1]

If it sounds too good to be true then it usually is.

If you're getting paid for work but you're working some sort of scheme to avoid paying either PAYE or Corporation Tax then you'd be an idiot not to know that HMRC will eventually close the loophole. Also, there's always the chance that HMRC will want a heavily punitive retrospective tax bill based on their interpretation that you've been dishonest.

Also, I have an inherent distrust of anyone "loaning" me money that's mine.

[Unwitting Catalyst]

Britain's got talent

It's offshore,Jersey,and loan based. My accountant suggested it and he's been pretty straight so far.

Thanks for the replies.

You know how they have those big red crosses on Britain's Got Talent for an act they don't like. There are three aspect to this scheme. Each one is worthy of an big red cross.