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Previously on "Life after EBTs: the next tax 'scheme'/scam."

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  • cojak
    replied
    Originally posted by DonkeyRhubarb View Post
    The writing is on the wall for all these schemes.

    I would expect most users will go back to a PSC.
    I'll be recommending that they use reputable umbrellas. Not that they will, of course but if I were HMRC I'd put a big marker on any new PSC start ups for the next couple of years.

    Leave a comment:


  • DonkeyRhubarb
    replied
    The writing is on the wall for all these schemes.

    I would expect most users will go back to a PSC.

    Leave a comment:


  • cojak
    replied
    The next scammy variation on a theme....

    Loans via Pension Funds (or 'raiding the piggy bank')

    As described by ASB in another thread....

    Originally posted by ASB View Post
    There are some circumstances where a pension fund can make loans. They are pretty limited but I believe an employer can under some circumstance borrow the cash from the pension fund.

    I was thinking maybe something like:-

    Pay employee minimum wage.
    Pay balance into pension fund.
    Employer borrows from pension fund
    Employer makes back to back loan to employee

    I suspect there are a whole host of hurdles to jump in order for the loan not to be taxable - at least at a point it gets written off. But I suspect the objective is to, in effect, get the pension money into the employees hands now rather than when they reach pensionable age.

    As to whether it can be effective. I haven't got a clue. I imagine it will be effective until challenged. Probably not after that.

    The tax planning industry will still be coming up with all sorts of jolly wheezes. Some may work for a limited period of time. Some people will go for them, but it is not exactly a risk averse method of moving forward.

    Edit: there are also of course "unlock your pension now" type arrangements. In effect sellingpension rights to a 3rd part in exchange for something now. These could potentially be used to diver pension cash to a scheme member early - at a considerable cost no doubt.

    Again, would it pass muster? Seriously doubt it, since the intent is clear. To get reward for employment to the individual now.

    Leave a comment:


  • SueEllen
    replied
    Originally posted by cojak View Post
    They go for various names SE, but generally are something like Corporate (or Corporation) Tax Planning.
    That explains the new ads I've seen.

    Like with EBTs I wouldn't touch them with a barge pole.

    Leave a comment:


  • NotAllThere
    replied
    Originally posted by cojak View Post
    But bigcos have big tax lawyers to defend them,...
    And friends in government and deals with HMRC. (Yes, I've a subscription to Private Eye...).

    Leave a comment:


  • cojak
    replied
    Originally posted by NotAllThere View Post
    Generate an artificial loss, then offset that against your profits. Just like some bigcos.
    But bigcos have big tax lawyers to defend them, most contractors are only prepared to pay for advice from boards like this.

    But my point still stands, if you want to look at the pros and cons of this, speak to your accountant.

    These leeches have only started appearing with the closure of EBT schemes.

    Leave a comment:


  • NotAllThere
    replied
    Generate an artificial loss, then offset that against your profits. Just like some bigcos.

    Leave a comment:


  • cojak
    replied
    Originally posted by SueEllen View Post
    What are these new schemes called?
    They go for various names SE, but generally are something like Corporate (or Corporation) Tax Planning.

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by SueEllen View Post
    What are these new schemes called?
    Well they are pretty much the same as EBT's but they are now called [something else] benefit Trust and they all have QC opinion so obviously safe as houses

    Leave a comment:


  • SueEllen
    replied
    What are these new schemes called?

    Leave a comment:


  • xoggoth
    replied
    blood-sucking, amoral*
    Best description of HMRC/government I've seen for a while.

    Leave a comment:


  • cojak
    started a topic Life after EBTs: the next tax 'scheme'/scam.

    Life after EBTs: the next tax 'scheme'/scam.

    Following a suspicious post and a couple of spam posts that I didn't let through, I thought it a good idea to let everyone know what the next 'too good to be true' scam the blood-sucking, amoral* 'wealth managers' are pimping these days.

    'Legally' reducing your corporation tax ('crippling corporation tax'? Feck off).

    Now I know that there are legal ways to reduce corp tax, but our accountants ought to already be advising us to do this.

    So be aware. And also be aware that I'm no longer letting these type of posts through. EBTs were bad enough, but this really is just taking the p1ss and making mugs out of all of us.

    *By amoral I mean promoters not giving a flying feck if they put punters in the firing line for massive tax bills from HMRC after the promoter fleeces them out of money, before shutting the scheme/scam and dissolving the company once it has creamed enough punters.

    Read HMRC view of things here: http://www.hmrc.gov.uk/avoidance/tempted.htm

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