Payschemeplus / Talent Resource Mnagement TRM

[tim123]

So the reply to this I have is:

The loan is not a real loan, so you are not required to pay back something that you did not owe us in the first place.

Except, when the company goes bust because of a large tax bill from HMG, the liquidator will call in all the loans that aren't really loans.

tim

[oraclesmith]

My understanding is that these loans are usually made by trusts which are set up to (almost) guarantee they'll never redeem the loan. There has to be certain clauses under which the loan would require repaying but these are as likely to come about as Tony Blair standing on his head and juggling ice cream. I still wouldn't play with them though, because in my opinion they rely on the inherent attraction of 'getting away with it' and to my mind fall in the same category as Nigerians offering bank transfers. For a couple of extra quid a month it doesn't seem worth the potential problems. In my opinion.

[flaphead]

Okay Then

So what should I do?

What would you boyz & girls recommend for me to do?

Start my own ltd?

[oraclesmith]

Gets my vote.

[test_guy]

My understanding is that these loans are usually made by trusts which are set up to (almost) guarantee they'll never redeem the loan. There has to be certain clauses under which the loan would require repaying but these are as likely to come about as Tony Blair standing on his head and juggling ice cream. I still wouldn't play with them though, because in my opinion they rely on the inherent attraction of 'getting away with it' and to my mind fall in the same category as Nigerians offering bank transfers. For a couple of extra quid a month it doesn't seem worth the potential problems. In my opinion.

Nonsense
More than a couple of quid! PS+ can achieve 87-91% nett income based on their legal payment structure from offshore. Tax and NI is also paid in the UK on an assessable salary. I make an extra 2000/3000 a month from using this scheme. Its a legal loophole with a tax avoidance scheme number so why not use it?

[test_guy]

So what should I do?

What would you boyz & girls recommend for me to do?

Start my own ltd?

Just not worth the hassle now for one man bands - avoid. Become an employee of another company and let them take all the admin hassle.

[Cowboy Bob]

Nonsense
More than a couple of quid! PS+ can achieve 87-91% nett income based on their legal payment structure from offshore. Tax and NI is also paid in the UK on an assessable salary. I make an extra 2000/3000 a month from using this scheme. Its a legal loophole with a tax avoidance scheme number so why not use it?

Uhh, no. As a tax resident of the UK you are liable for tax and NI here. Where the scheme is located is irrelevant. There is no way you can achieve 87-91% if you are paying your full allocation of tax. It's widely agreed that the absolute maximum you can get is 81-82% by using a Ltd and only then by strategically taking advantage of expenses and shutting your Ltd down periodically (and starting a new one) to recieve the taper relief. I suspect you have not paid your full allocation of tax. Expect a large tax arrears bill through your door at some point in the future.

[cojak]

Just not worth the hassle now for one man bands - avoid. Become an employee of another company and let them take all the admin hassle.

Now that's definitely rubbish.

There is no more hassle to getting a Ltd than using an umbrella. You just have control of you own company's money. Get a decent accountant (NW springs to mind) and they'll sort you out.

Beware stong opinions from someone with 2 posts to their name! (Giant employees, I'll be bound! )

[test_guy]

Uhh, no. As a tax resident of the UK you are liable for tax and NI here. Where the scheme is located is irrelevant. There is no way you can achieve 87-91% if you are paying your full allocation of tax. It's widely agreed that the absolute maximum you can get is 81-82% by using a Ltd and only then by strategically taking advantage of expenses and shutting your Ltd down periodically (and starting a new one) to recieve the taper relief. I suspect you have not paid your full allocation of tax. Expect a large tax arrears bill through your door at some point in the future.

You are entitled to an opinion but until you have used the various schemes I doubt if you understand how they work. Maybe you are bitter as you can't bring yourself to step out of your LTD comfort zone? Anyway, what you say is wrong. Yes you are a tax resident and your salary earnings (perhaps 10-20k) are taxed but the bulk of the income is treated differently whereby the agreement is that you take it in the form of employee benefit zero % interest loans which are recorded on a P11D. It is a benefit of working as an employee and any employer can provide this facility to your staff. It is not a MSC scheme. You are an employee and pay PAYE/NI. Over 90% nett is easily achievable.

[test_guy]

Now that's definitely rubbish.

There is no more hassle to getting a Ltd than using an umbrella. You just have control of you own company's money. Get a decent accountant (NW springs to mind) and they'll sort you out.

Beware stong opinions from someone with 2 posts to their name! (Giant employees, I'll be bound! )

Obviously running your own LTD company and being an employee where you are not a director have very different legal responsbilities. You permies will remember how easy it was! and remember accountants cost money! As for my low number of posts, everyone has to start somewhere?