another tax avoidance scheme - an annuity!

[arby]

I've been approached by Innoplan extolling the virtues of a scheme that lets me keep 90% of my income. It would appear I would work for them and they would pay me a token salary and I would receive the rest of the money in the form of a reverse annuity - they give me the rest of my earnings as a lump sum and I then owe them income in the form of annuity payments at some future date. All clear as mud but hey, what could possibly go wrong? I get to retain 90% - good or what?!

[MrMarkyMark]

I've been approached by Innoplan extolling the virtues of a scheme that lets me keep 90% of my income. It would appear I would work for them and they would pay me a token salary and I would receive the rest of the money in the form of a reverse annuity - they give me the rest of my earnings as a lump sum and I then owe them income in the form of annuity payments at some future date. All clear as mud but hey, what could possibly go wrong? I get to retain 90% - good or what?!

Old hat, just a version of the loans scheme

[SueEllen]

You are a fool if you think this will work.

Expect HRMC to wait 5-10 years then come after you for back tax and penalties. Oh and the back tax will be more than what you would have paid originally as they estimate it.

[DotasScandal]

You are a fool if you think this will work.

The OP was being tongue in cheek, methinks?
We all know by now that when that fruit is ripe HMRC will simply ask Parliament for (and get) the appropriate bit of "targeted" retrospective legislation.

Rinse, repeat.

[Fred Bloggs]

I've been approached by Innoplan extolling the virtues of a scheme that lets me keep 90% of my income. It would appear I would work for them and they would pay me a token salary and I would receive the rest of the money in the form of a reverse annuity - they give me the rest of my earnings as a lump sum and I then owe them income in the form of annuity payments at some future date. All clear as mud but hey, what could possibly go wrong? I get to retain 90% - good or what?!

What could possibly go wrong?

[arby]

The OP was being tongue in cheek, methinks?

Very!

Just putting together a list of questions to ask if the clowns come back to me to ask what I think of their scheme.

In the bumpf they emailed me there are references to both Innoplan and First 4 Contractors. Amusingly both companies are listed as dormant?

[QCApproved]

Advise them you are happy to go ahead -
provided you receive a personal indemnification from all directors and officers for all future tax, NIC interest, penalties, legal expenses and other incidental costs any retrospective action may incur.

[WASP]

Innoplan

OK people I have been reading the story board those with recent dealings with Innoplan - have you took up there service

I came over to the dark side in 2014 - becoming a contactor after been strangled to death as a PAYE for 35 years

New to the contracting game my accountant - Brooksons who make the Spanish inquisition look like a Sunday school outing, I need to ditch as it's been 2+ years of pain

Bottom line is Innoplan HMRC compliant - I have been approached by them like everyone else I am looking for a more tax efficient way to extract money - in my case its 85% of my contract his may because I have a pension which is taken into account, I have asked for the relevant HMRC guidance on this Annuity lark - will wait and see what they come back with

I am not one for making decisions lightly I like to delve to the 10th Degree - otherwise the HMRC can have you by the short and curleys - sometimes I think Brooksons are an Agent for HMRC

I express my concerns with Innoplan - the marketing executive gives me the contact details of a third party who runs his books through them.

I contact this third party he worked in same line as me in the North Sea in the last 30 years whilst he has moved in different circles we know some of the same people - oil & gas is a small world we chew the cud on who we know and he mentions a name one that there is no way a scam artist could know unless you had been in the game - dejavu -any way I ask another mutual acquaintance if the third party is sound and he tells me he is a good guy, now this 3rd party told me he has used Innoplan for 3 years and has not ad any come back from HMRC

So any feedback out there on Innoplan and can amyone actually say they have a good contacting soluton

[WASP]

Old hat, just a version of the loans scheme

so whats your alternative

[cojak]

another tax avoidance scheme - an annuity!

so whats your alternative

There isn't one - you became a contractor 10 years too late.

OK people I have been reading the story board those with recent dealings with Innoplan - have you took up there service

I came over to the dark side in 2014 - becoming a contactor after been strangled to death as a PAYE for 35 years

New to the contracting game my accountant - Brooksons who make the Spanish inquisition look like a Sunday school outing, I need to ditch as it's been 2+ years of pain

Bottom line is Innoplan HMRC compliant - I have been approached by them like everyone else I am looking for a more tax efficient way to extract money - in my case its 85% of my contract his may because I have a pension which is taken into account, I have asked for the relevant HMRC guidance on this Annuity lark - will wait and see what they come back with

I am not one for making decisions lightly I like to delve to the 10th Degree - otherwise the HMRC can have you by the short and curleys - sometimes I think Brooksons are an Agent for HMRC

I express my concerns with Innoplan - the marketing executive gives me the contact details of a third party who runs his books through them.

I contact this third party he worked in same line as me in the North Sea in the last 30 years whilst he has moved in different circles we know some of the same people - oil & gas is a small world we chew the cud on who we know and he mentions a name one that there is no way a scam artist could know unless you had been in the game - dejavu -any way I ask another mutual acquaintance if the third party is sound and he tells me he is a good guy, now this 3rd party told me he has used Innoplan for 3 years and has not ad any come back from HMRC

So any feedback out there on Innoplan and can amyone actually say they have a good contacting soluton

There is no such thing as a scheme being HMRC compliant. If you looked at the Budget yesterday you will see that the Government are moving all public sector contractors into PAYE and we expect them to do the same to the private sector.

Tell your friend to expect a brown envelope from HMRC very shortly - he'll be thrilled to know that you put them onto him as HMRC read these boards...