Reply to: Legal Tax Counsel Opinion

[LondonManc]

Says the poster who couldn't be arsed to read this thread.

Oi cheeky, he CBA reading it the first time.

Perhaps if we post a link to lube, he might show more interest.

What concerns me is that he's answered his own question - the scheme promoters have no liability and won't be around in five years. The contractor takes all the responsibility for their own greed and the promoter simply acts as someone who socially engineers the contractor.

[cojak]

On top of that, if you CBA reading the whole forum, at least read this:

http://forums.contractoruk.com/hmrc-...following.html

Says the poster who couldn't be arsed to read this thread.

Of course HMRC will come calling! And they'll call YOU - not the scammy company or the QC who looked at the doc before pocketing his cash...

Read this again. http://forums.contractoruk.com/hmrc-...following.html

[rl4engc]

I am (soon to be) new to contracting and could really do with some advice regarding how to avoid IR35. I've contacted a number of companies who claim
to offer up to 90% of rate and be outside the IR35. These take the form of a monthly loan which is never paid back. So are these legit or will the HMRC come calling and are they the same as EBTs that are mentioned on this site.

To try to provide a practical way forward for you, I take it you're Limited? You'll need insurance which a lot on here use QDOS for, they provide free contract reviews from an IR35 perspective so if you get a gig and they send you a draft (it's always draft before you agree to it) contract, email it QDOS and they get back to you within 3 days. I've used this service and it is pretty good.

Say you've had the contract reviewed and send it back to the Client Co (or more likely agency) with changes and see what they come back with. I get the impression most will be quite happy to provide "IR35 Friendly" contracts as most contractors are Limited* and need them. *citation needed

They'll either incorporate the suggested changes and everyone's happy, or they'll say "No Changes" at which point it's up to you how to proceed, tell them you're walking or accept the contract and the risk that if HMRC investigate whilst the contract is still in place then you may need to stock up on lube and a bit for between your teeth. But probably very unlikely to be fair.

[LondonManc]

That's true, which is why a special forum has been setup to handle the thousands of contractors who are dealing with tax demands.

HMRC Scheme Enquiries

On top of that, if you CBA reading the whole forum, at least read this:

http://forums.contractoruk.com/hmrc-...following.html

[BlasterBates]

They all claim that thousands of contractors are using their services though.

Cheers

That's true, which is why a special forum has been setup to handle the thousands of contractors who are dealing with tax demands.

HMRC Scheme Enquiries

[TheRealSlartibartfast]

A little bit of me should congratulate you for having the nouse to stop and ask... but in General? With an accounting section next link down? With a whole section dedicated to the fall out from 90% schemes?... Sadly it's still a fail.

A fair point I will concede, however there was nothing specific to "Legal Tax Counsel Opinion" as far as I could see.

[MrMarkyMark]

They all claim that thousands of contractors are using their services though.

Unfortunately, very likely to be true.
Lets hope they have also bought some lube in, for the inevitable.

[TheRealSlartibartfast]

Advice on employee loans and HMRC

Hi,

I am (soon to be) new to contracting and could really do with some advice regarding how to avoid IR35. I've contacted a number of companies who claim
to offer up to 90% of rate and be outside the IR35. These take the form of a monthly loan which is never paid back. So are these legit or will the HMRC
come calling and are they the same as EBTs that are mentioned on this site.

This is one I have recently contacted w ww.extralimited.com/ who say their scheme is a "Legal Tax Counsel Opinion" and is completely different to an
EBT, have to say it sounds similar to me.

I will work for a single employer at their offices and travel there each day. Obviously I have no holiday, sickness, pension nor health.

Thanks in advance.

Thanks for all the responses. Yes, too good to be true and free lunches did spring to mind.

I've spoken to a few of these companies on the phone, very convincing, thing is they have no liability and won't be around in 5 years when
the HMRC come calling.

They all claim that thousands of contractors are using their services though.

Cheers

[EternalOptimist]

render unto Caesar what is Caesars.
When EO heard of this scheme, he was amazed and said to those following him, "Truly I tell you, I have not found anyone in Contractordom with such great faith."
For truly, Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor


please stand and sing hymn 327 'Ee I adeeoo, we gonna win the cup'

[LisaContractorUmbrella]

Ask to see the written opinion from the tax counsel and also ask to see the question that was asked to get that opinion. If you do get both I would be amazed but if you do post on here and we'll go from there

[northernladuk]

A little bit of me should congratulate you for having the nouse to stop and ask... but in General? With an accounting section next link down? With a whole section dedicated to the fall out from 90% schemes?... Sadly it's still a fail.

[MrMarkyMark]

Loan Sharks?

Mercenaries

[SlipTheJab]

Yes, indeed, much better .

Funny thing is, I actually met a couple who actually ran one of these schemes at Christmas.
They stopped telling me what a great idea it was, once they realised I could quote all the ones being legislated against now.
They then admitted, "we are looking into moving into other things".

Make of that what you will

Loan Sharks?

[DaveB]

Of course HMRC will come calling! And they'll call YOU - not the scammy company or the QC who looked at something similar but which the scheme promoter has decided is exactly the same and appropriated the associated opinion for their own product...

Read this again. http://forums.contractoruk.com/hmrc-...following.html

FTFY.

[cojak]

Of course HMRC will come calling! And they'll call YOU - not the scammy company or the QC who looked at the doc before pocketing his cash...

Read this again. http://forums.contractoruk.com/hmrc-...following.html