Umbrella companies using growth share schemes

[WTFH]

Who is the umbrella that is offering this?

[Isuvu]

Sorry but there is every reason to bite. Even considering using such schemes - any scheme, not just this one - is an act of gross stupidity so we try to warn people off them as clearly as we can.

But hey, your money, your life, your 15 years tax investigation.

Crikey, you lot really aren't a nice bunch!! Appreciate the advice, but there is never a reason to be rude!!

[Isuvu]

Who is the umbrella that is offering this?

There seem to be quite a number of them, and most of the 'contractor brokers' are peddling them...I'm not willing to start listing the names here as I don't want any run in's, seem to have achieved this with other members just for raising the questions!!

[WTFH]

There seem to be quite a number of them, I'm not willing to start listing the names here as I don't want any run in's, seem to have achieved this with other members just for raising the questions!!

We'd be interested just to get the name of one of them, maybe the one that gave you the information in your first post.

It's highly likely that they are an "umbrella" linked to a business that may have tried running schemes in the past, and it can serve as a useful warning to others.

[malvolio]

Crikey, you lot really aren't a nice bunch!! Appreciate the advice, but there is never a reason to be rude!!

Don't sweat it - I'm rude to everyone. The clue is in the forum name...

[DealorNoDeal]

Here is the killer...

Even if an arrangement is apparently watertight, HMRC can either:
(a) hit it with the GAAR (google it)
OR
(b) get the Government to introduce retrospective legislation to clobber it

The Government has already done (b) on several occasions, in the past 12 years, to tackle arrangements.

But, hey, if you feel lucky...

[Isuvu]

Here is the killer...

Even if an arrangement is apparently watertight, HMRC can either:
(a) hit it with the GAAR (google it)
OR
(b) get the Government to introduce retrospective legislation to clobber it

The Government has already done (b) on several occasions, in the past 12 years, to tackle arrangements.

But, hey, if you feel lucky...

Christ, enough with the nasty, clearly you've been bitten, and badly..You're sore I get it!!

And thank you for the above info.. I am aware of all of these things, If people don't ask questions then these things don't get unearthed, you don't need to go for the jugular every time!!! Play nice!!

[malvolio]

Christ, enough with the nasty, clearly you've been bitten, and badly..You're sore I get it!!

And thank you for the above info.. I am aware of all of these things, If people don't ask questions then these things don't get unearthed, you don't need to go for the jugular every time!!! Play nice!!

OK, back to square one. WE have two options here, either you are being naive by thinking that use of scheme of some sort is a good idea and that tax saving is possible without penalty (it isn't...) , or this is a(nother) attempt by a scheme promoter to sow the seeds in some people's minds, either directly or through a willing if underinformed accomplice (or perhaps a stooge, but let's be charitable).

But after telling people to step away from anything like this for at least twelve years, our collective patience is perhaps understandably wearing a little thin.

[dammit chloe]

Christ, enough with the nasty, clearly you've been bitten, and badly..You're sore I get it!!

And thank you for the above info.. I am aware of all of these things, If people don't ask questions then these things don't get unearthed, you don't need to go for the jugular every time!!! Play nice!!

It is necessary because this sort of nonsense is no different to previous schemes, it is playing with the letter of the law which no longer matters where tax is concerned. There is no wiggle room or clever scheme anymore and people need to understand that in no uncertain terms.

[Iliketax]

Once this part has been completed, the remaining amount is transferred into a Growth Share plan which is a method of employee benefit used by businesses throughout the UK.

This sentence is basically a lie. If you buy Tesco shares then they go up in value because Tesco does better. They don't go up in value because your unpaid salary goes to Tesco.

EBTs are used by some companies. Growth shares are used by some companies. But the whole point of growth shares is that they don't need to involve EBTs.

There is a whole heap of legislation that stops this working (s62, including redirection of earnings principle, Chapters 2, 3B, 3D and 4 of Part 7, Part 7A, transactions in securities, transfer of assets abroad, GAAR, etc). GAAR is an easy challenge for HMRC, especially with the 60% penalty.