Reply to: Sanzar Partnership? New IOM company

[Fred Bloggs]

You could always sign up with some dodgy umbrella company and their ahem "expenses dispensations" instead. Nobody ever had a battle with HMRC as a result of those I'm sure.

"Yet" is the important word missing from the above. And I'm not so sure actually, but I can't think of a specific case right now.

[malvolio]

What's everything just to clarify?

I read that there's a % penalty of owed taxes depending on how naughty/careless you have been with your tax payment behaviour. I love how the HMRC use such accurate measures to penalise people.

It's perfectly clear, actually. They will look for 100% of tax payments owed, plus simple interest per annum at a rate of around 5%, plus 100% of that total as a penalty. Usually, but not inevitably, they will assume you've simply cocked up and won't charge penalties. However, they will if they think you've not cocked up, in which case they will charge a percentage up to 100% depending on how dim they think you are.

[delmontebanana]

...and remember, if not you lose everything.

What's everything just to clarify?

I read that there's a % penalty of owed taxes depending on how naughty/careless you have been with your tax payment behaviour. I love how the HMRC use such accurate measures to penalise people.

[Vallah]

You could always sign up with some dodgy umbrella company and their ahem "expenses dispensations" instead. Nobody ever had a battle with HMRC as a result of those I'm sure.

[BlasterBates]

Sanzar are still going, so that must say something. I've trawled & trawled and can't find any real horror stories... let me know what you decide!

If you are going to go the IOM route but working in the UK just be aware HMRC will investigate if they find out, or in this case they are probably doing so, and when it goes wrong you lose everything.

What will not happen is that HMRC will simply say "oh you have an IOM company that's OK sorry to have bothered you".

If it was that simple everyone would go through IOM companies no-one would pay tax and the UK would go down the plug hole, so whoever is in power they have a vested interest in making sure anyone who tries this suffers.

Are you prepared for a long legal battle to find out, whether this scheme is really a water tight one that exploits a loophole that no-one ever thought about?

...and remember, if not you lose everything.

[LisaContractorUmbrella]

Well apparantly you can take home up to 90% of your earnings. They don't explain how but it is supported by QC opinion

[cssmonauts]

I know this is a very old thread, but does anybody have recent opinions on Sanzar Solutions as I believe they are now called?

I've been operating as a LTD Company for around 4 years and now I'm looking at a contract in Italy so I'm looking for a more tax efficient way of operating.

Any advice is welcome - good or bad!

Thanks.

Sanzar are still going, so that must say something. I've trawled & trawled and can't find any real horror stories... let me know what you decide!

[BigC]

I know this is a very old thread, but does anybody have recent opinions on Sanzar Solutions as I believe they are now called?

I've been operating as a LTD Company for around 4 years and now I'm looking at a contract in Italy so I'm looking for a more tax efficient way of operating.

Any advice is welcome - good or bad!

Thanks.

[BrilloPad]

Is there any site or HMRC sub section where the public can check if any scheme providers are being sued ?

I doubt they would advertise it. They will probably lose.

[Likely]

Is there any site or HMRC sub section where the public can check if any scheme providers are being sued ?

[BrilloPad]

Montpelier have built there core business around tax planning. Sure they have banked a lot of fees over the last few years from the ir35 scheme but if they lost the case it would severely damage their reputation. Moreover, the ir35 scheme is not the only arrangement they have based around the dta loophole, so we can only speculate as to how much of their business is riding on this.

I don't see how they could continue to promote tax planning in the same way if they lost these high profile cases. How many contractors still in the scheme would switch to their new offering if the original scheme failed? How many companies, high rollers would continue to place their trust in them?

Of course, if they win the case I'm sure they will have no trouble attracting new business. I suspect a lot of potential clients are standing on the sidelines at the moment waiting to see how it turns out.

The stakes are arguably just as high for Montpelier as they are for us. The price of failure will be very painful for all concerned.

good point

I spoke to someone recently who was early into the scheme - seems they charged less to some who started early. the rest is payable if/when MTM win. So they have more than reputation on the line.

Though I wonder how easy it will be to collect the money? One would hope people would be very pleased at the tax saved - but some pple are so mercenary.

[DonkeyRhubarb]

Can Montpelier survive losing the case?

Montpelier have built there core business around tax planning. Sure they have banked a lot of fees over the last few years from the ir35 scheme but if they lost the case it would severely damage their reputation. Moreover, the ir35 scheme is not the only arrangement they have based around the dta loophole, so we can only speculate as to how much of their business is riding on this.

I don't see how they could continue to promote tax planning in the same way if they lost these high profile cases. How many contractors still in the scheme would switch to their new offering if the original scheme failed? How many companies, high rollers would continue to place their trust in them?

Of course, if they win the case I'm sure they will have no trouble attracting new business. I suspect a lot of potential clients are standing on the sidelines at the moment waiting to see how it turns out.

The stakes are arguably just as high for Montpelier as they are for us. The price of failure will be very painful for all concerned.

[BrilloPad]

I agree with DonkeyRhubarb, if there is any chance of a successful legal challenge on human rights or whatever grounds to the retropective aspects of the legislation, HMRC could have potentially lost years of revenue. If they'd just accepted the loophole existed and changed the law, the Montpelier scheme would have been closed years ago. If they lose in court they're stuffed. But then, when did they ever show any common sense...

I was lucky(?) enough to have stayed with MP for only 2 years, between 2001and 2002 so the debt when it comes might be manageable (I wonder if anyone knows whether you can raid your pension to pay off a tax bill), but it never sat well with me, I just thought at that time I had no options.

I understand those on the forum who have little sympathy, but to me at that time it seemed a matter of survival. I can only say that the very idea of any kind of retropective legislation, tax or whatever, just isnt RIGHT. Does the whole thing not completely undermine the covenant between individual and the law thats built up around the 'certainty' of the law at the time any action is undertaken. Surely this is a Pandora's box that should not be opened for what seems to me to be no more than a vendetta....

I have seen cases in fathers 4 justice where magna carta has been broken. Just the other day we saw chinese thugs on the streets breaking the UK law (specifically the right to protest).

But I dont blame the government - I blame those who stand(lie?) idly by while our freedoms are eroded.

[BrilloPad]

Hi all,

Very informative posts!!!

I'm currently working under PAYE as a temp, and getting 68% of what I earn.

Are Sanzar & Tax design okay? Does anyone currently use them? Who is preferable?

I want to earn as much as possible without breaking the law.

Any advice would be great

Cheers

Shan

I currently use montpelier. I think they are great.

what do you mean by breaking the law? HMRC seem to think that not paying tax/NI on their limited company turnover is breaking the law...

[poppy01]

retrospective law???

I noted with interest that the high court just threw out the retrospective aspects of the new immigration points system,

from the bbc - quoting Chris Huhn

"Changes like these must never be made retrospectively. Ministers must not only accept this ruling, but also undertake never again to introduce changes in the rules without properly checking that they are fair, proportionate and legal."