Aston Management - Take home 86% of gross?

[Mordac]

I found an explanation on 4 contractor site: www. 4 contractor .co.uk though don't understand why it says they're blocked to new applicants???

I think that's because the loophole was closed a couple of budgets ago. That site is run by a couple of contractors (Fiddle & Rhino) who used to post on here a lot (in Fiddle's case way too much ) and ISTR they did a lot of research in this area.

I Google-d 'Dignatio': Proves you need to do your homework!!!
It changed its name 3 times: 'Creative Style Consulting Ltd', 'Dignatio Corp Ltd' and finally 'Contractor Financial Planning Ltd'. Not only that but the director was portugese and the EBT was latterly operated by a bank in Montenegro!!!!!! As i said before (but even more so now!), the Isle of Man seems to be highly regulated!!!!!! Aston claims their trustees are independent and that the trust is administered by a top 10 UK firm of accountants - would be easy to check this out.

Did you get to the bit where the scheme went tits-up and cost a lot of contractors (including one or two of the regulars here) a lot of money? Quite frankly it doesn't matter who the accountants are (see Arthur Anderson & Enron). Basically, don't be a fcuking idiot.

[foxy]

What do you recommend then Pondlife?

Being new to all of this I have to explore the various (and often confusing) options. I'm attracted to the high returns so I therefore read all the replies to Gaz's post and set abt getting answers to satisfy myself. I posted my opinion and findings for Gaz's benefit.

If you don't like it, don't read it or if you're so au-fait with the whole thing at least put some coherent points across to enable me (and others) to understand the scheme and its benefits/downfalls more.

[monkeyboy]

What do you recommend then Pondlife?

Being new to all of this I have to explore the various (and often confusing) options. I'm attracted to the high returns so I therefore read all the replies to Gaz's post and set abt getting answers to satisfy myself. I posted my opinion and findings for Gaz's benefit.

If you don't like it, don't read it or if you're so au-fait with the whole thing at least put some coherent points across to enable me (and others) to understand the scheme and its benefits/downfalls more.

Its been said many times but not by me.

Ltd outside IR35 is the best way to go. Take insurance to protct yourself against the cost of an investigation. Anything that relies on a Barristers opinion - most EBT schemes etc. have not been tested . The IR will go after them.

Plus Ltd offers the contractor the most control of there lives. The only other scheme that seems safe and tested relies on not being UK domiciled. 3 contractors around me do that but all are from the southern hemisphere.

If you cannot get outside ir35 then umbrella offers the least admin.

Anything else offers far too many unknowns and too much risk.

IMHO

[Pondlife]

What do you recommend then Pondlife?

Why on earth would you want to trust someone else to manage your money.

1. Read the first timer guides both here and at PCG (both free)
1. Choose company name.
2. Choose an accountant (there are many recommendations for good ones on this site.)

Many accountants will help you set up the company, run your payroll, calculate applicable taxes, register for VAT, do your Self Asses etc. All for between £60 - £100 pm.

You just have to provide them with accurate information in a timely fashion and follow their guidance. The key difference is YOU decide when and how much to pay yourself Vs how much to leave in the company for future downtimes or investments.

I really can't see how much bigger the overhead is.

Just my opinion though - It's your cash.

[ChimpMaster]

I think Ltd o/s IR35 is good if your rate is low, i.e. allowing you to get close to 80% return. This is because you don't have to get into all that garbage about paying extra tax for dividends above the 40% threshold.

If however you have a high rate, then your net return from Ltd Co is going to be low at circa 65%. So you can see what the attraction is for these contractors who are offered returns of 80%+.

Of course, the "management company" gets a hefty cut of some 10% (I guess) but the end result is that the contractor gets more and the Government get less. After all, if the Gov got more, it would only go to feed the population that can't be arsed to work anyway. So no guilt trip, then?

[Pondlife]

If however you have a high rate, then your net return from Ltd Co is going to be low at circa 65%. So you can see what the attraction is for these contractors who are offered returns of 80%+.

What is it that a managed Co can do (legally) that your own ltd cannot to get this return?

And why the **** would you want to give anyone 10% of the money that you made.

[oraclesmith]

http://www.nolongerlimited.com/marketsolutions.html

According to this article you can't do it any more. It claims the EBT loophole is closed and they can no longer operate. The site is a CUK Alliance partner.

As I said before, I wouldn't touch it with a bargepole. Technically you could still owe a huge proportion of accumulated earnings to the Trust, and you can bet your last cent on them trying some legal trickery to get some back if they get into trouble. Remember, it's an accumulated loan, so if you get £50k in loans for ten years, that's half a mil you owe them.

[oraclesmith]

And another thing. Their domain name is only 6 months old and is registered to Smartpay in Lancashire.

SmartPay
Highlea
Poolfoot Lane, Little Singleton
Poulton Le Fylde Lancs
FY6 8LY
UK

Domain name: astonml.com

Created on: 2006-01-20
Expires on: 2008-01-20

[oraclesmith]

Smartpay in turn is the name of three limited's (Smartpay Limited, Smartpay Company Directors Limited and Smartpay Company Secretarial Limited), which all are c/o John Hardman & Co who are a company law firm in Manchester. It might not be them though, but it seems likely. All Smartpay companies first registered in Nov last year.

[oraclesmith]

High Lea in Poolfoot Lane is a bed and breakfast establishment.

http://www.funforall.co.uk/accommodation/fleetwood.htm

...... in Fleetwood !!!!!