Reply to: Take Home Pay of 85%+

[TheFaQQer]

If you need to be told how to use the search functionality, it's crap.

Wow - it took you six weeks to save up enough time to give negative rep.

Please tell me you've not been brooding all this time over Christmas about not being able to search?

[malvolio]

Please tell me this is some sort of really odd joke If you work in the UK, are tax resident in the UK and live in the UK you are liable for UK taxes - simples!

Don't believe anything Tarbera tells you. If it makes no sense, it's because he's trying to be ironic. Or talking normally, come to that. I think he's spent too long in Amsterdam myself.

[LisaContractorUmbrella]

CRAZY TALK malvolio !!!

Are you saying the thousands of contractors paying 0% UK tax by doing an offshore forex transaction to become tax free were wrong

Lets look at it in detail

I submit my timesheet to RBS for a month 10K
RBS pay offshore company 10K
Off shore company take £500 and pay me £9500 back into my personal account.
I keep the £9500 as tax free money

surly these 1000 contractors might have noticed if this was not 100% legal

Please tell me this is some sort of really odd joke If you work in the UK, are tax resident in the UK and live in the UK you are liable for UK taxes - simples!

[tarbera]

Carzy Talk

Not even close. UK tax residents pay UK taxes on all worldwide earnings at UK rates less any taxes already paid elsewhere. 20% - 0% = 20%, sadly....

CRAZY TALK malvolio !!!

Are you saying the thousands of contractors paying 0% UK tax by doing an offshore forex transaction to become tax free were wrong

Lets look at it in detail

I submit my timesheet to RBS for a month 10K
RBS pay offshore company 10K
Off shore company take £500 and pay me £9500 back into my personal account.
I keep the £9500 as tax free money

surly these 1000 contractors might have noticed if this was not 100% legal

[malvolio]

Please note as all your payments are given to you via a offshore company it is out of the
jurisdiction of the UK tax system, hence doesn't need to be declared. Only
the PAYE and expenses portion will be declared and we do that on your behalf.

Not even close. UK tax residents pay UK taxes on all worldwide earnings at UK rates less any taxes already paid elsewhere. 20% - 0% = 20%, sadly.

However, if you only put the "income" down on your SAR as a loan, and fail to mention that it is not repayable, you probably won't get taxed on it. Doesn't mean it's legal to do so though...

[LisaContractorUmbrella]

lol

Low Tax Contracting Umbrella Company Services - the Benefits | Unified Solutions

Not another loan scheme Mind you I'm not sure how good this one would be as they don't seem to have a QC's opinion on it

[ChimpMaster]

I wonder what happened to Tract in the end, or to their "employees". Quite a few contractors at one of my previous clients were using them, harping on about getting 90% returns.... until Tract disappeared overnight.

Unified solutions - can't even get their grammar correct.

[tarbera]

Health warning.?

Wow, those guys are saying they're a brolly but UK contractors can pay zero tax, legally??? I can understand why folks are sucked in by this kind of thing but it should have a huge health warning attached to it, surely?

Something like this then.?

http://forums.contractoruk.com/accou...osed-down.html

and there scheme here in text - lol

Hi

Thanks for expressing an interest to join Worldwide IT Corporation the only members only Umbrella company for exclusive clientele.

Currently we have over 950 contractors working at JP Morgan, Goldman Sacs, O2, BT,Unisys, Scottish Parliament e.t.c. Our contractors range from:

Home Office worked
MoD
Lawyers
Plastic Surgeons
Doctors
IT Contractors
Engineers

We have a simple maximising revenue approach to high earning contracts using a scheme which is IR friendly as well as maximising net income.

Please see attached example spreadsheet showing you what we could offer you a month if you decided to join us. If you joined us we would give you between 85-87% of your gross.

How we work:

Worldwide IT Corporation is a offshore company which will act as your fulltime
employee. They hire all the UK activities to a UK Management Company .

Tractmanagement Ltd is the UK management company who will be dealing with all UK
affairs on behalf of Worldwide IT Corporation. They will be the ones invoicing your
agencies, collecting funds and relaying it back to the offshore company.

Worldwide IT Corporation pays you in three ways:

PAYE (which is taxed at the current UK rate and can be any figure you want, this is paid monthly)
FOREX (TAX FREE, this is paid 6 weekly as it is important it is not seen as a salary payment)
EXPENSES (which is not subject to tax or NI deductions this is paid monthly on the 15th and 30th of each month)

This unique set up allows you to receive a vast proportion of your income to
the maximum benefit, paying the minimum tax .

Please see Google for more details.

Please note as all your payments are given to you via a offshore company it is out of the
jurisdiction of the UK tax system, hence doesn't need to be declared. Only
the PAYE and expenses portion will be declared and we do that on your behalf.

We have been running for almost seven years now and have never been confronted
by Inland Revenue. Also please note this is NOT an EBT scheme.

We will be doing all the tax, NI deductions, P46 , P45 , P11d and P60 ,
basically doing all the jobs your accountant does.

You will now need to tell your agency you will be joining Tractmanagement Ltd a Payroll Umbrella company and
forward them the details form. WE ADVISE OUR CONTRACTORS NOT TO DISCLOSE TO THERE AGENCIES/CLIENT THEY ARE USING OFFSHORE STRUCTURES, AS AGENCIES/CLIENTS DONT LIKE UMBRELLA COMPANIES WITH OFFSHORE AFFILIATES. PLEASE REMEMBER IT IS YOUR CONTRACT WITH THE OFFSHORE COMPANY THE AGENCY CONTRACT IS WITH US.

I attach a joining pack for you to fill and fax back to 01753 533269 or post
to:

Tract Management Ltd,
268 Bath Road
Slough
Berkshire
SL1 4DX


Please note the Contract of Employment is a standard contract and is only used to make your agency contract IR35 friendly, we do not pay sick days, bank holidays if your agency dont, nor do we honour the grievance procedure speculated in our Contract of employment. (the only grievance / notice period honoured is one which is speculated in your Agency Contract which your agency will send directly to us) . We must have these points highlighted in our Contract of employment in order to make our set up legally viable.

I also attached an employee details form which needs to be filled and sent/faxed back also.

[Fred Bloggs]

Wow, those guys are saying they're a brolly but UK contractors can pay zero tax, legally??? I can understand why folks are sucked in by this kind of thing but it should have a huge health warning attached to it, surely?

[tarbera]

i raise your 85% to 95%

Can you remove the site search functionality and put a big Google button instead?

lol

Low Tax Contracting Umbrella Company Services - the Benefits | Unified Solutions

[d000hg]

It's easy. Go to google and use <search term> site:forums.contractoruk.com

Can you remove the site search functionality and put a big Google button instead?

[MarillionFan]

I was surprised to see that the forums now advertise one of these 85%, I know they use the rider "upto 85%" on their actual website, but still was curious to see how much research admin did before getting into bed with these guys considering the normal deride that comes with 85% schemas.

They're still a valid form of advertising. Just because long term contractors tend to prefer the safety of a Ltd these schemes are mostly in principle valid and so 85% is the theoretical maximum. In fact, it's possible to be higher than that. (but Admin won't let me advertise my 120%)

[SimonMac]

I was surprised to see that the forums now advertise one of these 85%, I know they use the rider "upto 85%" on their actual website, but still was curious to see how much research admin did before getting into bed with these guys considering the normal deride that comes with 85% schemas.

[DTL]

Nobody who has used our service in the last 6 years has found that to be the case. And no, BN66 doesn't mean that they will.

If Montpelier loses the case in the Supreme court does this not mean that HRMC will then come after all similar schemes?

[SneakySimon]

80 - 85% take home

Don't bother

A few guys in our office are in these sort of schemes and all of them are currently sweating, with one going through legal disputes that have continued for a couple of years.