Help with dividends (VERY WORRIED)

[Tavy]

Hi guys,

I have a limited company which was set up in the UK but by these services: browningcontractorservices.com they call themselves BCSL (Browning Contactor Services).

Because I have been so focused on delivering on my contract (first time IT contractor) I didn't pay too much attention to their way of work, but as time went by I am starting to feel worried on how they operate.

So basically to describe how I get the dividends transferred to my personal account:

1. My end client pays me in my company business account
2. I raise an invoice to these guys BCSL (Browning Contactor Services) and they pay me the dividends in my personal account. About 73% of the total value of the contract.

The problem is they say they are established in the UK - w ww.browningcontractorservices.com - (and the staff is British - I can tell from the accent when I am on the call with them), but the biggest concern is that they are based in Cyprus actually.

I want to get rid of them as it feels really dodgy but I don't know how to deal with the dividends myself. I am really worried. Has anyone worked with them before? And how do you guys deal with dividends? How much you can retain from the contract value?

Thanks.

[DealorNoDeal]

1. My end client pays me in my company business account
2. I raise an invoice to these guys BCSL (Browning Contactor Services) and they pay me the dividends in my personal account. About 73% of the total value of the contract.

How does the money get from your business account to BCSL, so they can pay you a dividend? Or, is the invoice you raise from BCSL to your company? Do you get paid anything, other than the 73% dividends eg. small salary from your company?

[TheInvoicer]

Hi guys,

I
1. My end client pays me in my company business account
2. I raise an invoice to these guys BCSL (Browning Contactor Services) and they pay me the dividends in my personal account. About 73% of the total value of the
Thanks.

This doesn’t make sense so some more info:

Who do you invoice for the work? Agency or direct?
You don’t mention if you have an accountant? I assume not?
Where does the money from your biz account go, and how does it get there?
What is your day rate or what type of sums we talking here a month?

The answer is going to end up with you needing to talk to an accountant.


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[webberg]

Has all the hallmarks of tax avoidance.

Dividends? Really? Not loans?

Zombie company = MSC issues?

Just stop paying them.

[Tavy]

How does the money get from your business account to BCSL, so they can pay you a dividend? Or, is the invoice you raise from BCSL to your company? Do you get paid anything, other than the 73% dividends eg. small salary from your company?

The money get to BCSL through the invoice they raise to my company which I pay to them and then they pay me in my personal account as dividends.

[Tavy]

Has all the hallmarks of tax avoidance.

Dividends? Really? Not loans?

Zombie company = MSC issues?

Just stop paying them.

They never said they pay as loans. But I've always paid the tax on the exact amount that comes into my personal account which was calculated by the accountant.

[ladymuck]

The money get to BCSL through the invoice they raise to my company which I pay to them and then they pay me in my personal account as dividends.

Oh! You said you raise an invoice to them, no wonder we were confused.

That's not a dividend. That's a nasty sounding tax evasion scam and you need to stop it before you get into trouble.

Get an accountant and find out how to properly operate a limited company.

[Tavy]

This doesn’t make sense so some more info:

Who do you invoice for the work? Agency or direct?
You don’t mention if you have an accountant? I assume not?
Where does the money from your biz account go, and how does it get there?
What is your day rate or what type of sums we talking here a month?

The answer is going to end up with you needing to talk to an accountant.


Sent from my iPhone using Tapatalk

Who do you invoice for the work? Agency or direct? - I invoice the client directly
You don’t mention if you have an accountant? I assume not? - I do have use accountancy company which BCSL has provided. It's called Complete Accounting and these guys are based in the UK. I've always paid the taxes on time and they seem to do a good job with the paperwork.
Where does the money from your biz account go, and how does it get there? - Once the money are in my bank account, BCSL will send me an invoice towards them which I need to pay. After they probably take a small cut, they send those funds in my personal account...
What is your day rate or what type of sums we talking here a month? - My day rate is 350 and I get about 73% from the contract value.

[Tavy]

Has all the hallmarks of tax avoidance.

Dividends? Really? Not loans?

Zombie company = MSC issues?

Just stop paying them.

Can the accountant sort out the dividends thing then if I spoke tho them? Would they know how to deal with that? How do you do it?

[Tavy]

Oh! You said you raise an invoice to them, no wonder we were confused.

That's not a dividend. That's a nasty sounding tax evasion scam and you need to stop it before you get into trouble.

Get an accountant and find out how to properly operate a limited company.

I feel I've been scammed so bad on the company setup