'compliant' arrangement

[webberg]

The address of Income Management is one shared by more than 50,000 corporate names.

Amongst them is Dark Blue Solutions/Umbrella.

That company and its various connected parties have previously been active in the contracting sector and we certainly have clients who have used them and are under enquiry.

[northernladuk]

Only way to be safe is leave anything with the term loan in well alone it seems.

[PerfectStorm]

Avoid anything with the name "loan" or "trust"

Equally, anyone who rings you to advertise their high take-home umbrella services

Any that beat Limited Company take homes will be illegal. Most who contact you out of the blue will be illegal.

You can tell the legit umbrella companies - their take homes are worse than limited and you have to call them first

[cojak]

Avoid anything with the name "loan" or "trust"

Equally, anyone who rings you to advertise their high take-home umbrella services

Any that beat Limited Company take homes will be illegal. Most who contact you out of the blue will be illegal.

You can tell the legit umbrella companies - their take homes are worse than limited and you have to call them first

I would modify this post.

These schemes are not illegal as such - but expect the HMRC to come after you to pay tax on your income - they WILL NOT GO AFTER THE SCHEME PROVIDERS - THEY WILL GO AFTER YOU.

I didn't expect to have to point people to this thread these days, but read this first:

If you are tempting to join a new contractor scheme, ask the following questions

[Fred Bloggs]

The address of Income Management is one shared by more than 50,000 corporate names.

Amongst them is Dark Blue Solutions/Umbrella.

That company and its various connected parties have previously been active in the contracting sector and we certainly have clients who have used them and are under enquiry.

Thanks, I was appalled by what is a top tier recruitment website spamming users with this over and over. But I suppose it is simply a sign that even today, there is enough take up of this type of scheme to make it still highly profitable to be involved in.

[animallover]

Thanks for all the replies. Firstly i think the reason why many recommend these 90% take home umbrella type companies is because there are referral fees. Every person they refer they get £500

With all the new legislation noone should seriously consider one of these schemes. Far better to use an Ltd company and pay a reputable accountant so sort your affairs unless you are savvy.

The dilemma is what to do for those caught up. The vast majority if not all tax experts would advise someone in my situation to just settle.

It's just the company are so adamant that they are compliant... I can't see a test case coming out in time.

All I can do is be totally up front and provide HMRC with all the facts and beg for leniency.... 😥😥😥

[animallover]

Ps. The companies are Umbrella Contracts Ltd who use Birling Management...

[Togoodtobetrue]

Ps. The companies are Umbrella Contracts Ltd who use Birling Management...

As far as I remember their director on companies house is an ex smart pay director, it’s amazing how many of these schemes link back to the same people!

[animallover]

I feel some lawsuits coming on... And quick as well, before these companies disappear..

[Dmac]

Didn't really know what we were signing up to

I'm beginning to realise that many of us really had no idea what we were signing up to. The complexity of the arrangements included multiple transfers between shady onshore and offshore entities, trusts and supposedly legitimate payment management companies like Umbrella Contracts Ltd and Smartpay.

I feel incredibly stupid for falling for the nonsense in their literature, and for not investigating the solutions and providers more rigorously at the time I signed up (2013) when it now appears there were plenty of warnings about (including on this site).

I (and may others) am certainly being punished now for this whilst the perpetrators get off scott-free with their vast wedges of cash! My anger however is more at myself than the schemers and HMRC.

Rant over - I do find it a bit therapeutic!