RDE Wealth. Anyone heard of this mob ??

[vadhert]

What the hell is a Tax Boutique?

[cojak]

I was just called by one of these people. And they sent me the email through, which describes how I can improve my take home earnings by £17,000 per year.

Now, I am not considering it. I have run a limited company for 14 years, never considered umbrella companies, even when they were all knocking on the door, and now that is dead in the water, so I shall not be considering this dodgy deal either.

However, she will be calling me back in a few days, and I would like to have a definitive response to kill the sales pitch dead.

Can anyone tell me the glaring failure of these schemes? Other than trusting someone unknown to me to manage my finances and investments?

Thanks

Yes, ask them why their website doesn't follow the law - see here: http://forums.contractoruk.com/accou...ml#post1923072

And also ask them why their website is registered to Identity Protect Limited?

It's all wonderfully transparent, isn't it? You might as well hand your money over to a chap with a stripey shirt and a swag bag over his shoulder for all of the due dilligence you'd be able to perform.

[barrydidit]

I was just called by one of these people. And they sent me the email through, which describes how I can improve my take home earnings by £17,000 per year.

Now, I am not considering it. I have run a limited company for 14 years, never considered umbrella companies, even when they were all knocking on the door, and now that is dead in the water, so I shall not be considering this dodgy deal either.

However, she will be calling me back in a few days, and I would like to have a definitive response to kill the sales pitch dead.

Can anyone tell me the glaring failure of these schemes? Other than trusting someone unknown to me to manage my finances and investments?

Thanks

Tell her you've landed an ace PAYE permie gig and ask what she can do with that?

[NetContractor]

I was just called by one of these people. And they sent me the email through, which describes how I can improve my take home earnings by £17,000 per year.

Now, I am not considering it. I have run a limited company for 14 years, never considered umbrella companies, even when they were all knocking on the door, and now that is dead in the water, so I shall not be considering this dodgy deal either.

However, she will be calling me back in a few days, and I would like to have a definitive response to kill the sales pitch dead.

Can anyone tell me the glaring failure of these schemes? Other than trusting someone unknown to me to manage my finances and investments?

Thanks

[Merlin1972]

I was approached by these guys before Christmas and ashamed to say I was strongly considering it. Thanks to all the contributors for helping me see sense.

[MrMarkyMark]

As an addition to this....

While I was away, socialising, at Christmas I actually met a couple of people that ran one of these firms.
After a fairly lively discussion it was realised that I would not have any interest in any "tax advice / planning".

They always say do not mix business with pleasure

[sdonk]

The same thing happened to me this morning and the first thing I did was searching in this forum.

I replied to the guy telling him that I wasn't interested in the offer and suggested to have a read here, I believe his reply is worth to be shared:

Hi A*********,
It’s an interesting article that you have sent over.
Ultimately you have to ask why HMRC are so keen to put people off arrangements that are similar or appear similar to ours? If they had won numerous cases in court they may not be so keen but they are. This is because they have yet to win ANY case against a strategy utilising a loan from a Trust in court, not one! If you look at the attached document you will find the Sempra and Dextra cases, both going against HMRC. Even the recent Rangers case (where Rangers actually messed up the contracts and stated the loan amount due to the players) has gone against HMRC for a third time. As an aside, do we really think Rangers were the only football club utilising this sort of arrangement?
Where people have seen tax bills issued to contractors this hasn’t been because of a case won in court, this has been because HMRC have been able to issue APN’s (Accelerated Payment Notices) to clients. They have been able to do this because these Employee Benefit Trust schemes were DOTAS (Disclosure of Tax Avoidance Scheme) registered.
HMRC cannot issue APN’s to users of our strategy because our planning falls outside of the scope of DOTAS due to the commercial rationale that underpins the relationship with the Trust. Please have a read of the attached document for further information.

Given the rigmarole HMRC have had to go through just to get the APN’s passed I would suggest it is unlikely they will want to apply for changes and potentially risk losing their current power.
Also, it is likely they will delay bringing a Trust Loan case to court for as long as they possibly can as they can only end up losing the money they already have. While this isn’t great for contractors who used the EBT’s, for this strategy it is very good news.
At this point in time HMRC have realised that while the DOTAS schemes were easy pickings because they could issue APN’s, legitimate tax planning isn’t the same. This is why the scaremongering and prevention seems to be high on the agenda recently.
Did you know that in the recent budget they referred to IR35 as “anti-avoidance legislation”? Not many people do, but it does open the gates for them to potentially issue APN’s to users of one-man Ltd Companies splitting salary and dividend. Again, you have to ask yourself, if our clients were such easy targets why would they be shifting the focus?
Thanks for your time.

Regards
G*****

[TestMangler]

Is he one of those "other" types of contractor?

I think NLUK is trying to suggest that telling me to "F***** Google it myself" would have resulted in me administering a Glasgow Kiss. He is. however, greatly exaggerating. I'd probably just have given you a quick backhanded slap

[SueEllen]

You've not met TM have you?

Is he one of those "other" types of contractor?

[northernladuk]

You are suppose to say Google it your f*****g self.

You've not met TM have you?

[SueEllen]

Ah bollocks... Played me like a fiddle

You are suppose to say Google it your f*****g self.

[SlipTheJab]

The gist of that pitch sounds a bit desperate, are we seeing the death throes of these snake oil salesmen I wonder (and hope), surely no contractor now would look at this twice in the current climate

[northernladuk]

Thought I would post it here so NLUK can do a search for me

Ah bollocks... Played me like a fiddle

[northernladuk]

Check this thread out...

http://forums.contractoruk.com/accou...ml#post2149988

[TestMangler]

Got a phone call today from some bloke offering "contractor services". Told him I wasn't interested. he asked if it was worth sending me a mail, so I told him he could do whatever he wanted with his own time and hung up. A short while later, I get the mail below. Thought I would post it here so NLUK can do a search for me

So, is this something I should go for ??

Edit - Can anyone guess what the RDE in their name stands for ? Must have been made by the same branding agency that came up with "The Bon Appetit Chinese Restaurant"

Thank you for your time today. (Particularly like this bit)


The majority of contractors that we speak with are in the disadvantageous position whereby if asked to describe what they do for a living would probably answer with the phrase “I’m a contractor”. This will most likely also be reflected in the type and quality of advice that they are given by their peers and professional advisers such as accountants. This is why so many fall into the trap of believing that salary and dividend is the best/only option available.



On the other hand, whilst most successful businesses will engage the services of an accountant for their commercial governance, tax returns and book keeping, the majority will additionally engage the services of a specialist tax consultancy in order to optimise access to available profits.



RDE Wealth have worked and continue to work with various Tax Chambers and Tax Boutiques across the country and have worked with various providers over a number of years. The great advantage that this has given us is that we have been able to see which areas HMRC have attacked with success and more importantly the areas where HMRC either don’t bother trying to attack or they have failed in their attempts.



While you have probably seen a huge drive by HMRC to clamp down on any type of scheme used by contractors, there is a particular area of business profit/tax planning that remains unaltered due to its success over the last 30 years or so in helping companies to pay significantly less and in some cases no corporation tax.



The following two attachments will give further information on the:



Trust Planning – Looks at the history of Trusts and how a Ltd Company can use one to cut its Corporation Tax Liability to zero.



Benefits From A Trust – Examines how discretionary benefits from a Trust can be advantageous to beneficiaries and focuses on two House of Lords rulings stating that loans from a Trust cannot be classed as income.





Previously this type of planning hasn’t been available to contractors for a couple of reasons:



1) The planning was only available to larger businesses with turnovers in the millions

2) HMRC don’t necessarily view contractors/freelancers as genuine businesses



RDE have a solution which eradicates both of these hurdles – allowing contractors to benefit from increased tax efficiency (even with the soon to be introduced changes with dividends and expenses)



Below are figures based on a 20 day working month.



If you work 20 days at a rate of £300 that will equate to £6,000. You will also receive the 20% VAT (20% of £6,000) so £7,200 will be paid into your Ltd Company.
Assuming you are on the Flat-rate VAT scheme as a Consultancy at 14.5% you will only have to pay £1,044 (14.5% of £7,200) leaving £6,156.
Assuming you are claiming around £700 in expenses each month, leaving £5,456.
A typical salary to pay yourself is £833 each month so you will just transfer this amount straight into your personal account leaving £4,623 which is the company profit for the period.
You can transfer as much of this profit to the Trust as you deem appropriate. The amount contributed will reduce the company profit thus reducing the corporation tax liability.
Once the funds are in Trust, the Trustees are able to issue loans to individuals with whom they have a formalised commercial agreement.
Individuals who qualify in line with the above are eligible to request a commercial payment to the value of £3,883.32 (84% with the rest taken as fees).
This amount, added to the salary (£833) and expenses (£700) totals £5,416.32



£5,416.32 / £6,000 = 90.27% *Please note you would have to pay for an accountant with this money. Our recommended accountant charges £75p/m, however you are welcome to continue with your own.



RDE also provide a solution to the “in business” tests through a support consultancy which helps additionally with IR35 issues.



Please see the third attachment for further details:



Additional Services – Gives details of the Contractor Support Network and also the (optional) Accountancy Services.



I do hope you have found this information to be of interest and relevant to yourself.



I will touch base in the next few days to answer any questions that you may have. Please feel free to contact me in the meantime.