Reply to: 85%? Surely not?

[LisaContractorUmbrella]

Unfortunately Gavin this is not about morality it is about UK tax law which states that income earned in the UK must be taxed in the UK if you are a UK tax resident. The super rich using these sorts of scheme are often not tax resident in the UK although they may spend some of their time here. It may also be that the super rich can afford to lose £100k to HMR&C; the average contractor can't

[GavinR]

Seriously and realistically do you really think it's all above board????? Surely the fact your money is going out of this country would lead you to think maybe it's too good to be true. Do you know how many threads there are on here about offshore schemes.

I'm pretty new to all this and was just chiming in with something that I perceived as being remotely relavent I'm sure there are loads of newbies who have heard of similar things and this is a great chance for more experienced posters to point others in the direction of articles to read up more on the subject further... for example...

If you type in BN66 - I think you'll find the other topic, along with huge tax bills, bankruptcy, court proceedings etc etc

Thank you very much for the heads up - I will indeed look into BN66 some more.

And why should tax avoidance schemes only be for the rich? Why cant us plebs partake as well?

... I do have moral questions relating to paying tax abroad whilst taking advantage of what the UK has to offer but... when a society is unfair in how it spreads it's wealth and the laws are there in place to support tax avvoidance why shouldn't we (the non-super rich) not take advantage of the regulations that the people with a lot more money use. If the gap between rich and poor is allowed to increase further, as awful as it sounds, I know which side of the gap I want to be on.

Kind Regards,

Gavin

[BrilloPad]

Seriously and realistically do you really think it's all above board????? Surely the fact your money is going out of this country would lead you to think maybe it's too good to be true. Do you know how many threads there are on here about offshore schemes.

where's Malvolio when you need him???? Putting up his shed?

Its not for everyone : but there are some who like the scheme.

And why should tax avoidance schemes only be for the rich? Why cant us plebs partake as well?

[MarkOD]

Seriously and realistically do you really think it's all above board????? Surely the fact your money is going out of this country would lead you to think maybe it's too good to be true. Do you know how many threads there are on here about offshore schemes.

where's Malvolio when you need him???? Putting up his shed?

[MarkOD]

Oh for god sake! Let's all do it, sounds brilliant, definatley compliant, definatley legal. Wont be subject to retrospective legislation! And because i'm based in the UK earning in the UK and use the NHS for god sake i'll use an Isle of Man company that's definatley compliant

[LisaContractorUmbrella]

"Maybe I'll look into it in the future should the right contract comes along - but the entire point of my post being... maybe there is a way to get over 80% of what you earn by taking advantage of double tax treaties...

... although at what risk is another topic altogether."

If you type in BN66 - I think you'll find the other topic, along with huge tax bills, bankruptcy, court proceedings etc etc

[GavinR]

maybe there is a way to get over 80% of what you earn...

Hi All,

I was speaking in person with an accountant today who believed he could get 82% for a contractor earning over £100k/annum and whose day rate excluded expenses (as in the client pays expenses on top). It was to do with an intermediary Isle of Man company and you subcontracted to that company who dealt with your client and due to the Double Tax Treaty they have with the UK mainland you can get 82% of what you earn.

The accountant seemed knowledgable regarding the areas I asked him on and the firm has been established in my home town for a while. I won't be using them yet (if ever) as I absorb my expenses into my day rate and run them through my ltd company account and besides, I don't earn enough anyway They only touch high earners.

Maybe I'll look into it in the future should the right contract comes along - but the entire point of my post being... maybe there is a way to get over 80% of what you earn by taking advantage of double tax treaties...

... although at what risk is another topic altogether.

Kind Regards,

Gavin

[ilovehr]

looks like springboard might be quite new, there's no way of getting a calculation and a lot of their website is still under construction etc. They say their fee works out at £12 after tax if you're a high rate tax payer however my umbrella say it's more like £14.50 and i'm sure they'd say it's lower if they could get away with it so sound more appealing.

I think I'm paying £27.50 gross at the moment....

Anyone fancy mystery shopping them to find out what they're up to and how they reckon they can get you 85%? I think its going to be by making lots of assumptions about expenses. Maybe they are assuming full claims up to the amount of their dispensation...

In fairness, when the bloke did my registration he didn't make any assumptions and the amount I got in my payslip was pretty much what they quoted. They've been pretty good so far, not had any payment issues but I agree their website is a bit amateur! Their payslip is a nightmare to understand though. When I worked with Parasol it was really comprehensive - the only reason I can understand theirs is because I have worked with Parasol before and know what to expect.

Anyway, I'm glad I'm going Limited soon - I've come to the conclusion that Umbrellas are all the same.....

[MarkOD]

looks like springboard might be quite new, there's no way of getting a calculation and a lot of their website is still under construction etc. They say their fee works out at £12 after tax if you're a high rate tax payer however my umbrella say it's more like £14.50 and i'm sure they'd say it's lower if they could get away with it so sound more appealing.

[BrilloPad]

I know quite a few who have stuck with montpelier and their loan scheme.

Its far too risky for me : but some like adventure.

[TheFaQQer]

Well the do have to compete against loan schemes who genuinely offer 85%.

[ilovehr]

Name and shame....

Who's the company in question?

It's Springboard....

[BrilloPad]

Make's me wonder if they're struggling and are trying to buy some business from the unwary.

Well the do have to compete against loan schemes who genuinely offer 85%. As long as HMRC dont change the rules retrospectively.

[MarkOD]

why would you email someone who's already using your service and tell them they could be getting them more but then can't deliver on it? Surely that's just going to pi*s people off when they look in to calcualtions and they can't get you 85%.
Who's the company in question?

[ilovehr]

Totally agree

And I know they're not peddling an EBT or any other "planning structure"...I'm just pee'd off that they can send this sort of mailer out to exisiting users, especially when like me they're getting about 70%....

Make's me wonder if they're struggling and are trying to buy some business from the unwary.