My Sanzar / Garraway Experience

[Alan @ BroomeAffinity]

I am now using the Ltd company route to tax avoidance.

You mean "prudent and sensible tax planning" shirley?

[TestMangler]

I am now using the Ltd company route to tax avoidance.

[andyc2000]

As a former EBT user, I'd agree - given that with a Ltd you can get on the flat rate VAT scheme, the return on your ex-VAT day rate is pretty much comparable anyway, so long as your contract is not on your doorstep and you have no expenses...

Also with this one the money isn't even yours when they give it to you - remember this is a 50 year loan, that has to be extended again after 50 years and I think declared to your estate when you die so it can get written off....

I am now using the Ltd company route to tax avoidance.

[meanttobeworking]

What did you expect, really? Its an EBT, its the IoM, you're paying less than 10% tax on (probably) income that under normal circumstances you'd be paying iro 40%. Did you not think that this could go wrong? Get a limited company set and accept that paying 20% or thereabouts on £80k isn't all that bad.

As a former EBT user, I'd agree - given that with a Ltd you can get on the flat rate VAT scheme, the return on your ex-VAT day rate is pretty much comparable anyway, so long as your contract is not on your doorstep and you have no expenses...

[Alan @ BroomeAffinity]

What did you expect, really? Its an EBT, its the IoM, you're paying less than 10% tax on (probably) income that under normal circumstances you'd be paying iro 40%. Did you not think that this could go wrong? Get a limited company set and accept that paying 20% or thereabouts on £80k isn't all that bad.

[cojak]

This is the reason why most people recommend using your own LTD, you have control of your own money...

[LisaContractorUmbrella]

EBT's have been made unlawful - the business model that you describe is the reason why - a totally artificial arrangement that reduces HMR&C tax revenues. Sorry to say but I don't think you'll be the only one caught up in the fall out over the next few months

[cssmonauts]

Ok, I have decided to edit my original post as it is a point that covers all of the current Trust/Loan schemes out there, not just the one operated by Sanzar, and it was unfair of me (because I was angry) to word the post in such a way that it could be construed this was purely a Sanzar problem.

Once your money goes into a Trust, it's no longer yours. You are at the mercy of Trustees who have no obligation or responsibility to you. They can decide not to let you have your money back, for whatever reason, and you have absolutely no recourse. This has actually happened to me this week so this is an experience rather than a hypothetical situation. I guess the reasons why aren't relevant - the point to focus on is that it is possible that you might not get your money returned to you as you expect.

It's a flaw in the plan; there's plenty of discussion on here about these schemes vs Umbrella Vs Ltd - you pays your money, you make your choice. I'm sure with all the QC advice available to them there must be some mechanism they can put into place that would remove this possibility.

So, please don't think "oh that would never happen", because it has, to me. You must be aware of this and consider it carefully if you are planning to use this type of solution.

** I need to make this clear - they are not permanently denying me my money, I have to wait until the next trustees meeting before I can make another request which should be received without issue; to their credit Sanzar, have been very helpful in trying to help me out personally in this situation **