Reply to: PayScheme+ - can someone spell it out pls?

[malvolio]

Sorry, I don't do non-ascerbic...

However, since you miss my point, Hector can ask the Guernsey company for a list of its clients and since Guernsey, unlike Switzerland, doesn't have a banking secrecy law they will probably oblige. He doesn't have to attack the offshore company explicitly, he is only interested in the UK tax payers who aren't following his rules.

There are three issues here: a company not bound by UK taxation law selling a product/service on the basis that it removes a UK-based tax liability, the dimwits who believe its propaganda and sign up, and the risk that the Geurnsey compnay could one day decide to close up and take it's bankings off to the Caymans or something and leave its clients' bills outstanding (which in practice is what happpened with Dignatio, the company folded up for some reason and a lot of people lost money wihtout any way of redress).

[danthomas25]

Back to my question... again...

Ever heard of mutual taxation arrangements? Or tax residency? If you are UK resident for tax, hector won't care where you earn your money or where you stash it, you have to pay UK tax on it.

I said "And, although yes the co. could go bust in theory, Hector and a large tax bill can't happen for a guernsey-based company can it?".

I'm not talking about ME, I'm asking about the loans company's position (which I don't own either).

Anyone fancy answering that without being ascerbic?

[malvolio]

I don't know what the problem is with you guys. I have been using Payscheme for over 6 months now.

Personally, I like taking home 91% of my earnings

Personally I think you are both breaking the law and making life incredibly more difficult for the more honest among us. Or you're talking bollocks. So go back under your smug little rock

[Denny]

OK...

PayScheme+ advertise on Contractor UK aswell as other well-known sites. If they are "dodgy" or "illegal" (from April) why are they being allwoed to advertise, surely this would be misleading contractors?

I think website advertising is still unregulated, therefore illegal schemes can be advertised. That's why there are so many disguisting porn sites you can go to which would never find themselves openly displayed on bookshelves.

[Cowboy Bob]

[acraceea]

I don't know what the problem is with you guys. I have been using Payscheme for over 6 months now.

Personally, I like taking home 91% of my earnings

[lilfreckles]

Its disgusting! They shouldnt be able to advertise in such a known website!

Obviously they are getting paid for advertising their banner for a lenght of time!! But it gives us contractors a misleading edge on these payroll companies.

I love my PAYE Umbrella. Wont change it, I recommend it! (parasol)

[Hart-floot]

Hector and a large tax bill can't happen for a guernsey-based company can it?

You might like to check this out
http://www.thisisguernsey.com/code/s...ticleID=112977

As the previous poster mentioned, if you are UK resident for tax then you have to disclose everything.
Not sure if the current "amnesty" for using offshore bank accounts applies to working via offshore umbrella schemes but Hector is starting to get serious about offshore accounts. The Irish amnesty bought in a huge amount of revenue and the UK's IR took note! . Once the amnesty period is over it will be open season on those people with undisclosed accounts and i suspect they'll will not look too kindly at offshore umbrellas either.

[malvolio]

Ever heard of mutual taxation arrangements? Or tax residency? If you are UK resident for tax, hector won't care where you earn your money or where you stash it, you have to pay UK tax on it.

[danthomas25]

more of the same

Perhaps you don't remember Dignatio?

No, afraid not (not been in the game long), but from what I read about them, the set-up at P+ is quite different.

And, although yes the co. could go bust in theory, Hector and a large tax bill can't happen for a guernsey-based company can it?

[Bagpuss]

How can a company go bust that operates simply by taking xx% from the money coming in and then pays the rest out?

Perhaps you don't remember Dignatio?

http://forums.contractoruk.com/archi...hp/t-1267.html

http://www.shout99.com/contractors/s...id=12770&n=100

[Crossroads]

How can a company go bust that operates simply by taking xx% from the money coming in and then pays the rest out?

When Hector presents them with a large bill for PAYE, NI or frankly whatever tax he feels like, should he decide that the loans/trusts/whatever should be taxed as income.

[danthomas25]

More on Payscheme+

Back to the original question - I suggest you compile a list of questions you have regarding their operating model and put them to the company. They'll answer them, those these answers may or may not put you at ease. Questions such as "how is the loan not employment-related?" and "are you in any way an MSC?" are good starter points for you. tel no is on their website.

btw are you interested in going with them? if you have your own co, I'd stick with that. if you want better returns, get a better accountant!

[danthomas25]

The loan...

How can a company go bust that operates simply by taking xx% from the money coming in and then pays the rest out?

[Pondlife]

as they issue a loan

Why would you want to let another company (which you have no control over) take your hard earned money and then lend it back to you?

What happens if they go bust - don't you think the creditors would start calling in these loans?