Reply to: Self employed but with own Ltd Co

[geoff from contracta IOM]

To the OP

It does not work , the DR legislation announced nearly a year ago talks about " relevant steps" in order for the funds to make their way to the trust . If it is your Ltd. Co. and you take the decision at any time to allocate company funds for the purpose of providing a benefit through a trust you will be caught by the legislation under part 7A. Operating this way is no different to attempting to still use an EBT and they as we all know are no longer legal to use in this context.

If you want to PM me I can discuss in more detail and there is potentially a solution.

[tractor]

...

ITGEEK - I PMd you yesterday evening to ask your location. As you have not been kind enough to answer me I thought I would look it up. The IP address you have been posting from is based in the IoM. Care to explain?

Deleting your posts once they have been quoted is sheer genius too

This made me lol, so I looked up the potential for this scheme and found two relevant tax regulations and they were both covered by Geek Financial Policy 101 vis;

• CYA Manual Section 102.43, sub section a: There is no such thing as a free lunch.
  
• CYA Better Manual Section 1: If something looks too good to be true, it probably is.

If this guy is claiming to be posting from Hudds with an IOM IP and doesn't see that he has been caught out, I give up.
ITGEEK do you really expect anyone to believe you signed up with an IOM proxy by accident and you are ACTUALLY not associated with this lot?

[Imperial Knight]

Helix - the aggresive tax avoidance(?) mechanism

For those who are interested Helix is a micro operation headed by a used photocopier salesman, a tactful salesman perhaps, but not the best to advise the public on tax matters, certainly not qualified to do so. Their office location I have seen with my own eyes is 'up a back alley' and not in the core financial zone of the island.
This scheme, like many others on this island, is a bastadisation of an original concept which over time has become less and less likly to stand up to an attack by HMRC. The claims that KPMG are supporting this are suspect, at least the partner at KPMG who I spoke to didnt think they were.
The Isle of Man is doing itself a diservice by allowing this type of unregulated activity to go on. Their executives constantly become irrate at the mention of their island being a Tax Haven however there doesnt seem to be any action in licencing or monitoring the types of companies who provide shady aggresive tax avoidance services. Honest contractors are being fooled and led into schemes by smart websites and sharp salesmen.

[stek]

Hi there, im not sure why my posts have been deleted. I saw that myself, i presumed the forum had deleted them.

I am from Huddersfield and work in huddersfield but i have family in the Isle of Man. My postcode in Huddersfield is (snip) - that is my humble abode.

I was born on the Isle of Man and moved to huddersfield after going to university there.

What is with the detective work?? I didnt realise i had done anything wrong.

Also, what does pm mean?? Sorry, i dont really know the forum lingo.

An ITGEEK doesn't know what 'pm' means? Come on!

I live in Leeds and never heard of any contractor-friendly place in Huddersfield, though there could be! Be interested to know where you are contracting.

Aside from this, whether you are a shill or not, HMRC will spit you out if you continue with these dodgy scheme, that much we all agree on.

Anyway, didn't Admin state ur IP is in IoM, you you still claim to be in Hudd? Where are you based right now?

[ITGEEK]

I will read the thread now. Im a fellow contractor; i just didnt expect this grief when all i did was offer some advice.

Obviously a touchy subject so I wont say anything in the future.

Thanks for the advice..maybe im a bit naive, Il make sure I am careful from now on then.

[craig1]

okay, i dont really no what ive done wrong here.

All i did was try and give some advice, in an attempt to help a fellow contractor.

I thought thats what the forums were for. I didnt expect all of this animosity.

The HMRC can come knocking at my door all they want; I will welcome them with open arms, ive got nothing to hide.

If ive done something to piss people off on here then i apologise, but im not quite sure why Im getting this stick.

You've not been given any animosity on this forum, just a lot of cynicism from contractors who are eternally suspicious of what is in effect a "get rich quick" scheme. See the points I raised yesterday morning (10:54)

Also, read the BN66 thread on this forum about the impacts this sort of aggressive avoidance scheme has had on people's lives. And, yes, this is an aggressive avoidance scheme of the sort that HMRC will eventually start to want to punish with "deliberate evasion" penalties, i.e. 100% penalty.

If you genuinely think that HMRC won't find anything wrong with this then I feel very sorry for you and hope you're saving quite extensively.

[ITGEEK]

okay, i dont really no what ive done wrong here.

All i did was try and give some advice, in an attempt to help a fellow contractor.

I thought thats what the forums were for. I didnt expect all of this animosity.

The HMRC can come knocking at my door all they want; I will welcome them with open arms, ive got nothing to hide.

If ive done something to piss people off on here then i apologise, but im not quite sure why Im getting this stick.

[craig1]

Hi there, im not sure why my posts have been deleted. I saw that myself, i presumed the forum had deleted them.

I am from Huddersfield and work in huddersfield but i have family in the Isle of Man. My postcode in (snip) - that is my humble abode.

I was born on the Isle of Man and moved to huddersfield after going to university there.

What is with the detective work?? I didnt realise i had done anything wrong.

Also, what does pm mean?? Sorry, i dont really know the forum lingo.

I'm sure the HMRC residents on this board will be eternally grateful for you providing them with a lead

I've snipped your address from my quote in case you choose to do this yourself in your original post...

[ITGEEK]

Hi there, im not sure why my posts have been deleted. I saw that myself, i presumed the forum had deleted them.

I am from Huddersfield and work in huddersfield but i have family in the Isle of Man. My postcode in Huddersfield is (snip) - that is my humble abode.

I was born on the Isle of Man and moved to huddersfield after going to university there.

What is with the detective work?? I didnt realise i had done anything wrong.

Also, what does pm mean?? Sorry, i dont really know the forum lingo.

[administrator]

ITGEEK - I PMd you yesterday evening to ask your location. As you have not been kind enough to answer me I thought I would look it up. The IP address you have been posting from is based in the IoM. Care to explain?

Deleting your posts once they have been quoted is sheer genius too

[eek]

]
Do what you like - think what you like. HMRC do not have the resources or power to shut down any legal and compliant scheme.

I'm glad that you think that but given that they now happily outsource tax collection to debt collectors with plans to rapidly increase the amount of work they do I wouldn't want to be betting on that.

As for whether its legal and compliant the only person who can decide that is HMRC who will probably eventually get round to it once it becomes worthwhile and that could be in 5 years time. They would then pursue you for the appropriate tax from all previous years just as the BN66 are currently finding out (and frankly while I know why they are unhappy I don't hold out much hope for them). Worse than that the tax laws have changed so I really wouldn't hold out any hope.

[craig1]

I am most definately not an employee of Helix. I am simply speaking of my good experience with them. Ive only been with them a year because they have only been up and running since 2009, i work in Huddersfield and 3 of my buddies are with Helix too. (All 3 of us will happily speak with you Tristan)

Do what you like - think what you like. HMRC do not have the resources or power to shut down any legal and compliant scheme.

Im interested to hear how you are all managing your payroll? None of you use any solution and pay less tax?? Nonsense. If im vunerable to lose money then so are you.

Tristan, if your not 100% happy/confident in Helix, then dont use them. But there is a lot of people on these forums that dont really know what they are talking about.

Quick questions:

1. Are you exploiting an artificial situation to avoid tax?
2. Are you diverting untaxed income earned in the UK relating to a UK resident to an off-shore based company?
3. Is that money then paid back to that UK resident at a higher net value than could legally be done through a UK-only transaction?

If the answer to those is objectively "yes" then HMRC will close the loophole eventually and I'd advise you to read up on the implications of those impacted by BN66.

[Waldorf]

Hi Guys,

My name is Tony - Ive been with Helix since 2010 - the solution has worked exceptionally well for me; Glen and the other boys are great, always there to answer my questions or concerns, and as a result myself and Glen are now good friends. The scheme is compleletly water tight, Harley Richards and KPMG work with Helix to ensure this; BN66 is completely irrelevant for the Helix solution so no need to worry about that.

I understand peoples concerns - but i would reccommend the solution to any contractor.

Good luck with whatever you decide.

With all the bad news recently this has cheered me up.

[JamJarST]

Hi Guys,

My name is Tony - Ive been with Helix since 2010 - the solution has worked exceptionally well for me; Glen and the other boys are great, always there to answer my questions or concerns, and as a result myself and Glen are now good friends. The scheme is compleletly water tight, Harley Richards and KPMG work with Helix to ensure this; BN66 is completely irrelevant for the Helix solution so no need to worry about that.

I understand peoples concerns - but i would reccommend the solution to any contractor.

Good luck with whatever you decide.

Lets pretend you are a real contractor and not an employee of Helix

You have only been with them for a year and you think it is ok. How many HMRC investigations have you sucessfully passed in that time?

[stek]

Hi Guys,

My name is Tony - Ive been with Helix since 2010 - the solution has worked exceptionally well for me; Glen and the other boys are great, always there to answer my questions or concerns, and as a result myself and Glen are now good friends. The scheme is compleletly water tight, Harley Richards and KPMG work with Helix to ensure this; BN66 is completely irrelevant for the Helix solution so no need to worry about that.

I understand peoples concerns - but i would reccommend the solution to any contractor.

Good luck with whatever you decide.

Does anyone really believe this guy is NOT a Helix shill?