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Previously on "Remuneration Trust and Limited Company / Umbrella"

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  • WalterWhite
    replied
    Going back to this, I can find nothing else to back this up. Certainly no figure as to what the "outstanding tax" was.

    Accountancy Age for example ran an article saying he now pays Corp Tax but make no mention of him ever paying additional tax for his time with K2

    I would have thought that if he had paid a substantial amount having tried to avoid lots then there would be more mention of it than just that one liner in an article about Chris Moyles wouldnt there?
    Last edited by WalterWhite; 8 January 2016, 15:37.

    Leave a comment:


  • WalterWhite
    replied
    Originally posted by SunnyInHades View Post
    Some celebs also use the bankruptcy financial model (spend-receive demand-declare bankruptcy-repeat), resulting in the payment of zero income tax.
    Dr John Tribe .. "an individual's bankruptcy record is effectively wiped clean after just a year .. some celebrities are being advised that bankruptcy is the best way to avoid their tax bills."

    e.g. Kerry Katona (twice.. 2008, 2013), Calum Best, Duncan James and Anthony Costa of boyband Blue, Joe Swash and Martine McCutcheon from Eastenders, Chris Eubank, Christopher Biggins, Peter Stringfellow
    23 February 2014 .. Kerry Katona 'moves into £3,000 a month mansion'

    This financial model works best if you can generate an immediate high cash flow soon after bankruptcy .. family photo shoots in Now/Hello magazine serve this purpose well. Katona is a master exponent of the model.
    Interesting, I wasn't aware of such a model

    Leave a comment:


  • SunnyInHades
    replied
    Originally posted by WalterWhite View Post

    celebrities
    Some celebs also use the bankruptcy financial model (spend-receive demand-declare bankruptcy-repeat), resulting in the payment of zero income tax.
    Dr John Tribe .. "an individual's bankruptcy record is effectively wiped clean after just a year .. some celebrities are being advised that bankruptcy is the best way to avoid their tax bills."

    e.g. Kerry Katona (twice.. 2008, 2013), Calum Best, Duncan James and Anthony Costa of boyband Blue, Joe Swash and Martine McCutcheon from Eastenders, Chris Eubank, Christopher Biggins, Peter Stringfellow
    23 February 2014 .. Kerry Katona 'moves into £3,000 a month mansion'

    This financial model works best if you can generate an immediate high cash flow soon after bankruptcy .. family photo shoots in Now/Hello magazine serve this purpose well. Katona is a master exponent of the model.

    Leave a comment:


  • WalterWhite
    replied
    Originally posted by LisaContractorUmbrella View Post
    The celebrities have the means to fight HMRC; the average contractor doesn't. You have to bear in mind that HMRC are like terriers - once they grab hold they don't let go! You can't argue the minutiae of any scheme that you use, the provider won't do it for you, so you'll need a tax barrister (upwards of around £500 per hour) to present your case and a lawyer to do the spade work. If you win, you get to keep any money that you saved by using the scheme but you won't, in all probability, get back your costs - this is why only the very rich seem able to get away with avoiding tax on a grand scale and the man in the street doesn't. It doesn't even matter if you win your case in the first instance as HMRC can always go back for a second, third or even fourth bite of the cherry e.g. the Rangers case - you could end up needing that lawyer and tax barrister for years
    You state that the scheme provider won't argue the minutiae of the scheme. From looking at the forums Montpelier have helped the BN66 guys, AML seem to be supporting their EBT users. Obviously there are others that haven't but you shouldn't tar all with the same brush.

    The provider I used have shown me copies of letters they have sent to HMRC on behalf of clients - they did this when I approached them about leaving in an attempt to keep my business. I was very tempted but Webbergs words were enough to make me think I should get out now just in case.

    Anyway, to say that nobody will be supported is not entirely true.

    Leave a comment:


  • WalterWhite
    replied
    Fair enough I didnt realise he had paid up.

    What about others? Do you really believe those mentioned in that article are the only ones and all the other celebrities are paying 40% tax on their millions?

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by WalterWhite View Post
    Firstly let me make it clear I did use a scheme but have now left having spoken with Webberg via PM - I have yet to have any problems but only used for a few years.

    Anyway, just looking at your comment there and interested to know how you think all the celebrities that earn more money than us are paid?

    Jimmy Carr was using a scheme and hasnt had a tax bill, surely he isnt the only one? Salary and dividend would surely not be a viable option for people earning much more than us contractors (millions)?

    Genuinely interested in your thoughts?
    The celebrities have the means to fight HMRC; the average contractor doesn't. You have to bear in mind that HMRC are like terriers - once they grab hold they don't let go! You can't argue the minutiae of any scheme that you use, the provider won't do it for you, so you'll need a tax barrister (upwards of around £500 per hour) to present your case and a lawyer to do the spade work. If you win, you get to keep any money that you saved by using the scheme but you won't, in all probability, get back your costs - this is why only the very rich seem able to get away with avoiding tax on a grand scale and the man in the street doesn't. It doesn't even matter if you win your case in the first instance as HMRC can always go back for a second, third or even fourth bite of the cherry e.g. the Rangers case - you could end up needing that lawyer and tax barrister for years

    Leave a comment:


  • MrMarkyMark
    replied
    Jimmy Carr was using a scheme and hasnt had a tax bill, surely he isnt the only one?

    Before that, Jimmy Carr was the poster boy for tax avoidance schemes after reports in 2012 that he had invested in the controversial K2 scheme. He quit the scheme and paid the outstanding tax. He admitted he had made a terrible error of judgment, but he is still the punchline in most tax-related jokes.
    Chris Moyles’ tax bill after scheme fails - AOL Money UK

    Leave a comment:


  • WalterWhite
    replied
    Originally posted by TheFaQQer View Post
    You should be.

    Ask yourself the question - why doesn't everyone operate this way? Because if there was a legal, risk-free way to pay lower taxes, many more people would do it than they currently do.
    Firstly let me make it clear I did use a scheme but have now left having spoken with Webberg via PM - I have yet to have any problems but only used for a few years.

    Anyway, just looking at your comment there and interested to know how you think all the celebrities that earn more money than us are paid?

    Jimmy Carr was using a scheme and hasnt had a tax bill, surely he isnt the only one? Salary and dividend would surely not be a viable option for people earning much more than us contractors (millions)?

    Genuinely interested in your thoughts?

    Leave a comment:


  • SimonMac
    replied
    Your accountant, or an accountant?

    If it was your accountant I would get a new one!

    Leave a comment:


  • LisaContractorUmbrella
    replied
    I don't know the specifics of the scheme but I would guess this is pretty much how it works. Your LtdCo will invoice your client/agency for the work that you've done, the invoice will be paid by said client/agency and the money will arrive in your company account. YourCo will then make a payment to DodgyTrust Offshore Ltd who will then sprinkle on some pixie dust and pay the money (less their exorbitant fee) and a teeny tiny amount of tax to you, the contractor, in the form of a loan. You will sign an agreement that will somehow absolve you from ever having to repay the loan and everyone will be happy

    We will all then meet up here HMRC Scheme Enquiries in a couple of years time

    Leave a comment:


  • ASB
    replied
    It is almost certainly legal. But equally it is probably almost certainly ineffective in actually meeting its claimed objectives and the fall out from that could very easily make you very very unhappy indeed.

    Leave a comment:


  • TheFaQQer
    replied
    Originally posted by MBarve View Post
    I'm worried about HMRC enquiries etc.
    You should be.

    Ask yourself the question - why doesn't everyone operate this way? Because if there was a legal, risk-free way to pay lower taxes, many more people would do it than they currently do.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by MBarve View Post
    Is there anyone using this model? I'm worried about HMRC enquiries etc.

    Regards,
    M
    There is and you should be more than a little worried. Enough to drop the idea like the hot potato it is....

    Regards
    N

    Leave a comment:


  • cojak
    replied
    You can certainly consider it, but we will point and laugh if you come back complaining the HMRC are after you for 1 and 1/2 times the total of your contract in a year's time. See the HMRC Enquiries thread for more details.

    Leave a comment:


  • MBarve
    started a topic Remuneration Trust and Limited Company / Umbrella

    Remuneration Trust and Limited Company / Umbrella

    Hi,

    An accountant has approached me to offer a Remuneration Trust based service using my limited company. They will the book keeping, but their product is to extract money via a loan from the Remuneration Trust.

    Looking at the take home, definitely it is an option to consider. But, is this a legal way to operate a limited company? A similar service was offered to me by an Umbrella company.

    Is there anyone using this model? I'm worried about HMRC enquiries etc.

    Regards,
    M

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