Bin Ltd co ?

[NotAllThere]

No, they know it's not risky at all. For them.

[geoff from contracta IOM]

Brilliant, so even the scheme provider thinks it is risky

You do tend to find that most companies will indemnify themselves against events outside their control

[GillsMan]

You do tend to find that most companies will indemnify themselves against events outside their control

Yes, but not without just cause though.

[JamJarST]

You do tend to find that most companies will indemnify themselves against events outside their control

So you publicly admit that one of the things that may be outside your control is that HMRC will close this loophole down and apply punitive retrospective penalties and taxes. Care to put odds on the likelihood of this? 10% chance, 20, 30?

[geoff from contracta IOM]

So you publicly admit that one of the things that may be outside your control is that HMRC will close this loophole down and apply punitive retrospective penalties and taxes. Care to put odds on the likelihood of this? 10% chance, 20, 30?

Close the loophole - I would imagine so, can't say when ,consultation documents suggest Mid 2012 at the earliest
Apply Retrospective - Clarification of the legislation will not work with this scheme which was how they tackled BN66, so new legislation is required to tackle this specific point

Odds of closing eventually - 100%
Odds of retrospective - less than 1 %

Additional retention while it lasts about 15%

Not hard to do the maths on that , engaging a tax professional to audit the scheme and decide if it is legal to use or not is about 400 quid not long to get a ROI

[craig1]

Close the loophole - I would imagine so, can't say when ,consultation documents suggest Mid 2012 at the earliest
Apply Retrospective - Clarification of the legislation will not work with this scheme which was how they tackled BN66, so new legislation is required to tackle this specific point

Odds of closing eventually - 100%
Odds of retrospective - less than 1 %

Additional retention while it lasts about 15%

Not hard to do the maths on that , engaging a tax professional to audit the scheme and decide if it is legal to use or not is about 400 quid not long to get a ROI

While I can't guarantee that I'll do 80%+ retention, I can usually get over 70% through careful management and doing everything myself. It also has the added benefit that I have absolutely no risk of HMRC giving me a hefty retrospective penalty. The final, hugely important, benefit it has for me is that I'm not waggling my willy in Hector's face saying "come audit me out of turn with your Special Compliance Office team".

I understand that you have a product to sell but being cavalier with its ethicability isn't going to get you too many new "sales". I get a perverse sort of pride that I can retain far more of my earnings legally and ethically while being able to get rid of Hector fairly quickly in an audit with no more than the occasional advisory notice.

[geoff from contracta IOM]

While I can't guarantee that I'll do 80%+ retention, I can usually get over 70% through careful management and doing everything myself. It also has the added benefit that I have absolutely no risk of HMRC giving me a hefty retrospective penalty. The final, hugely important, benefit it has for me is that I'm not waggling my willy in Hector's face saying "come audit me out of turn with your Special Compliance Office team".

I understand that you have a product to sell but being cavalier with its ethicability isn't going to get you too many new "sales". I get a perverse sort of pride that I can retain far more of my earnings legally and ethically while being able to get rid of Hector fairly quickly in an audit with no more than the occasional advisory notice.

Surely the most ethical thing for you to do following your logic is pay full PAYE on your drawings from your company, I take it its fair to assume given the retention you quoted you take divies. I don't drawn the line on what is ethical or not I only work on what is legal or not, ethics have nothing whatsoever to do with taxation if they did we would be a communist country and all work for the state if you were to follow it to the end of the line. Otherwise who is to decide where the line is ?

[alreadypacked]

Just my thoughts:

If you submit reasonable Ltd accounts, your name is unlikely to be on any list.
If you join one of these scheme and it is investigated, your name will be on the list.

My motto: Fly low keep under the radar.

HTH