Prosper rewards

[eek]

It seems bizarre in the extreme that anybody would think this would work (ie the fee be tax deductible) even if they did bother anyway given the cost is 20% and the saving is about the same.

Nope the saving is either 26.5% (corporation tax and dividend tax) or 45% (employer / employee NI and income tax).

As I've pointed out before I never understood why the schemes charged 10 or so %. Given the amount of money they were saving you they could easily have charged a greater percentage. This is one of the first schemes I've seen where the percentage makes sense (although absolutely nothing else in the scheme does).

[ASB]

It seems bizarre in the extreme that anybody would think this would work (ie the fee be tax deductible) even if they did bother anyway given the cost is 20% and the saving is about the same.

[looonytunes]

Thanks for taking the time to reply

Accountant has been ditched


Not going near the scheme

[eek]

EIM21618 - Particular benefits: air miles, credit card points etc
In general, air miles, petrol tokens, credit card points etc. acquired by an employee are not taxable if they were acquired in the same way as applies to any other member of the general public, for instance by buying goods or services on which such benefits are given,
Provided the vouchers, air miles or points belong to the employee rather than the employer, they are not considered as being provided by reason of their employment even if the goods or services giving rise to them happen to be purchased as part of the employee’s business travel or using a credit card provided by the employer.

sounds a bit suss to me, thoughts? Anyone using it, or dont you want to admit it

As I'm now near a keyboard let's highlight the above to show how these scams work

The rules above cover a particular circumstance where points are award separately but alongside the actual purchase. Because they are incidental (and are probably equally earnt on normal no work related expenses) they aren't taxed.

However the above has absolutely zilch to do with how the scheme works, they just look for something within the HMRC guide book that they can hook fools with - and this "card" is a prime example - they can make £200 a month from an unsuspecting fool without any real effort.

There is an important point to make here - there is zero point playing games to avoid paying the correct amount of tax because HMRC have seen all the schemes over the past 20 years and now know both how to identify them and more importantly have changed the rules so they can use completely different data if required.

[Paralytic]

Out of interest, before ditching your accountant, ask them if they would receive a referral fee if you sign up for this dodgy scheme.

Is the accountant actually a qualified chartered accountant, and is he/she registered with any recognised body?

[jamesbrown]

Your accountant is a scammer, ditch them quickly.

[cojak]

Well, that didn’t take long to find an IoM connection - one of the least subtle tax scams we’ve seen in a while.

[northernladuk]

then 80% is applied to a prepaid credit card

So that clearly isn't rewards. It's a contrived way of loading up cash to spend so not a chance that will pass anything.

That's the most blatant bit of tax evasion that I've seen for quite awhile now.

sounds a bit suss to me

Completely dodgy but only just pips your accountant to top spot on the scale. Get a new one.

[WTFH]

Bingo...
Prosper Squared (UK) Ltd is registered in England & Wales, Company Number 09535801. Registered Address 843 Finchley Road, London NW11 8NA.
Prosper² and Prosper Rewards are trademarks of Prosper Limited Ports of Call, Bay View Road, Port St Mary IM9 5AE.



Adam Wallace: Used to work for AML.
https://find-and-update.company-info...63936/officers

Currently works for Mutually Protected International
https://find-and-update.company-info...59393/officers

Along side Michael Wilson

The same Michael Wilson who is the Person with Significant Control of Prosper²
https://find-and-update.company-info...35801/officers

[WTFH]

I agree with eek.

Who is your accountant?

[eek]

Dodgy as f%%% because hmrc will just look at agency reporting reports.

my advice would be to find a new accountant

[looonytunes]

MY accountant recommended Prosper2

From what I can make out the Ltd pays a marketing/subscription fee to Prosper 2, then 80% is applied to a prepaid credit card that can be used for anything except drawn in cash, used for gambling or fuel and as long as whatever your spending it on accepts mastercard

... so you pay a £1k fee a month then £800 to spend as you wish on your card. 200 goes to them and obviously you dont pay tax on the 800 as on your tax it goes down as a subscription and marketing.

Their info says

EIM21618 - Particular benefits: air miles, credit card points etc
In general, air miles, petrol tokens, credit card points etc. acquired by an employee are not taxable if they were acquired in the same way as applies to any other member of the general public, for instance by buying goods or services on which such benefits are given,
Provided the vouchers, air miles or points belong to the employee rather than the employer, they are not considered as being provided by reason of their employment even if the goods or services giving rise to them happen to be purchased as part of the employee’s business travel or using a credit card provided by the employer.

sounds a bit suss to me, thoughts? Anyone using it, or dont you want to admit it