Garraway Consultants - Too good to be true?

[doomage]

Yes, it is too good to be true.

Be prepared that they could go bust and you could lose a sh!tload of money.

Site says "Supported by QC opinion". But so was montpelier and the S58 stuff.....

Among other things they are effectively asking you to work for minimum wages and trust them to loan you money to make up the rest of your income. If any thing goes wrong you will have no rights to demand the balance of money from them as it is a loan and not a salary so there is no legal obligation for them to pay it to you, nor can you show damages since you have not lost anything, you can always go elsewhere for a loan if you need money. And for this they want around 10% of your day rate in fees.

HMRC will automatically open an enquiry after you have handed in your tax return. You will almost certainly have to deal with one of these:

HMRC Specialist Investigations – Code of Practice 8 and other non-fraud investigations

It will probably take several years before it´s resolved and you may have to go to a tax tribunal. Are you sure you will have/can afford legal fees to deal with this?

I notice the solution does seem to mention that you might not need to declare it. That looks like you might face one of these:

Contractual Disclosure Facility. Code of Practice 9, Tax Fraud

So basically, you are recommending that he go for it

[TheFaQQer]

Among other things they are effectively asking you to work for minimum wages and trust them to loan you money to make up the rest of your income. If any thing goes wrong you will have no rights to demand the balance of money from them as it is a loan and not a salary so there is no legal obligation for them to pay it to you, nor can you show damages since you have not lost anything, you can always go elsewhere for a loan if you need money. And for this they want around 10% of your day rate in fees.

For the sake of what is probably a few hundred pounds a year is it really worth signing up for a scheme like this when you can legitimately work through your own limited and not worry what happens when HMRC decide they don't like the scheme and shut it down.

Since it sounds like a loan rather than an EBT, I've never understood why anyone would run the risk that the employer wouldn't just call the loan at some stage, leaving you with worse than nothing and having paid for the privilege.