What umbrella company do I choose? Is offshore safe?

[Barrygbr]

Good for you - being able to sleep at night is worth it.

That may seem to be the case for now, after all, that nice HMRC man has already whapped you round the head

Don't think for one minute though that he's done with you. The lord giveth, the tax man taketh away!

[Barrygbr]

Hi everyone

I am new to contracting, and am starting a 6 month contract at the beginning of March and need to sign up with an umbrella company. There are so many around, and having spoken with a few, I'm not sure which one to go for. They all offer the same rates, same perks etc so who do people recommend in the current climate.

The one's I have had quotes off already are Best Payment Services and first 4 contractors who both offered me 90% which seemed to good to be true. They were both on the first page of my google search so presume they are at the top of the game. I did the usual google search to check the reputations and to see whether people have had good/bad experiences with either of them to which I found a varying response. Has anyone had experience with either of these companies?

What I did find worrying on a simple google search was that one of Best Payment Services directors, Nathan Cafearo is an Isle of Man resident and is linked to various other payroll companies many of which operate out of the Isle of Man, he even registered the domain name <mod snip> best-pay <mod snip> which for some reason seems to now be non existent when you click on it, that does seem strange, do the directors swap names of their businesses all the time, and that's why it's now called Best Payment Services, that's all I can think why best-pay website isn't now working. To be fair Best Payment Services is based in Cheshire, so that particular payroll firm of Nathan Cafearo appears to be UK based, or doesn't it actually matter whether its offshore, its just you hear a lot of bad press about offshore in the news all the time.

Look forward to hearing peoples opinions.

Thanks guys

P

I just finished working with Best Pay in Oct 2016. Bit of a dodgy setup. They list an office in Nantwich but when you need to speak with somebody, they are IoM. I notice that they had ceased trading as bestpay and re started under the name you mentioned. I presume this is due to HMRC activity.

I am now being required to submit self assessment and they are really hesitant to provide the info I need. A particular issue for me was that they pay via NMW plus loan top up. This then puts you on the NHRC self assessment radar. When however you need the amount of the loan for your self assessment return, they say that you dont need this as it is not taxable. This is clearly incorrect info as HMRC have told me that it is classed as a benefit in kind and thus there is tax to pay on an imaginary interest that would have been paid (if the loan was via a bank).

The info should have been on the P60. Problem with this is that I did not get a P60 from them.

This then causes problems with submitting your self assessment and can lead to fines for late submissions.

I can't speak about the other company you mention but in general, this type of scheme is now much less popular than it was only a few months ago due to HMRC activity. The previous company I used (IQ Contracts) has now stopped offering contractor services altogether. Not ceased trading as ...... but now trading as...... but a total stop.

We just have to face up to facts. HMRC has us well on the radar and is coming for us thick and fast. Proceed with caution!

[lucyclarityumbrella]

I will take your advice, contractor umberella it is, thanks for the advice, it is appreciated, just goes to show that it was worth doing a bit of homework before going with my first ideas

I would be more than happy to talk you through how a compliant umbrella should work

[northernladuk]

To be fair the HMRC is also unscrupulous businessmen extorting money without account. This is known as racket.

The OP, in order to do offshore you have to have millions because you need to consult with people that will require that much. For one-man-band IT contractor you are on your own.

The only reasonable response to this is to delete the post. HTH.

[cojak]

To be fair the HMRC is also unscrupulous businessmen extorting money without account. This is known as racket.

The OP, in order to do offshore you have to have millions because you need to consult with people that will require that much. For one-man-band IT contractor you are on your own.

HMRC are not businessmen - they are government tax collectors.

[cojak]

My suspicions appear right, Mr Cafearo and all his businesses are Isle of Man based, this link makes interesting reading how certain payroll owners think they can keep ahead of HMRC, but all they are is unscrupulous businessmen by the looks of it, Nathan Cafearo surely must be looking over his shoulder at all times especially after reading this court matter: https://www.judgments.im/content/J1306.htm


I will take your advice, contractor umberella it is, thanks for the advice, it is appreciated, just goes to show that it was worth doing a bit of homework before going with my first ideas

Good for you - being able to sleep at night is worth it.

[europetractor]

My suspicions appear right, Mr Cafearo and all his businesses are Isle of Man based, this link makes interesting reading how certain payroll owners think they can keep ahead of HMRC, but all they are is unscrupulous businessmen by the looks of it, Nathan Cafearo surely must be looking over his shoulder at all times especially after reading this court matter: https://www.judgments.im/content/J1306.htm


I will take your advice, contractor umberella it is, thanks for the advice, it is appreciated, just goes to show that it was worth doing a bit of homework before going with my first ideas

To be fair the HMRC is also unscrupulous businessmen extorting money without account. This is known as racket.

The OP, in order to do offshore you have to have millions because you need to consult with people that will require that much. For one-man-band IT contractor you are on your own.

My suspicions appear right, Mr Cafearo and all his businesses are Isle of Man based, this link makes interesting reading how certain payroll owners think they can keep ahead of HMRC, but all they are is unscrupulous businessmen by the looks of it, Nathan Cafearo surely must be looking over his shoulder at all times especially after reading this court matter: https://www.judgments.im/content/J1306.htm


I will take your advice, contractor umberella it is, thanks for the advice, it is appreciated, just goes to show that it was worth doing a bit of homework before going with my first ideas

[northernladuk]

Just sign up with Contractorumbrella and have done with it all. You'll have seen Lucy posting in the part of the forum plenty.

[cojak]

Many thanks for the reply cojak, interesting info on the link you sent me, so weighing it up, if one of Nathan Cafearo payroll firms are based in the Isle of Man, the likelihood is that the lot will be?

first 4 contractors it is then unless am told otherwise by you guys, thanks

You didn't read all of the post, did you?

Any company offering you 90% take home WILL get you into trouble with HMRC.

Go back and read it again.

[jamesbrown]

who both offered me 90% which seemed to good to be true

Er, yes. If you go this route, what you've essentially done is to find some random person on the street, give them 100% of your income, and have 90% handed back to you, the 10% being trousered by them. Do you think in any way that absolves you of your responsibilities? It doesn't Read the link from cojak very carefully and then slap yourself for even wanting to believe this tosh.

But saying that, even there offer of 90% is to good to be true, it's quite a mission to find a provider who you know is 100% above board, them two appear not weighing everything up

Many thanks for the reply cojak, interesting info on the link you sent me, so weighing it up, if one of Nathan Cafearo payroll firms are based in the Isle of Man, the likelihood is that the lot will be?

first 4 contractors it is then unless am told otherwise by you guys, thanks

[cojak]

Hi everyone

I am new to contracting, and am starting a 6 month contract at the beginning of March and need to sign up with an umbrella company. There are so many around, and having spoken with a few, I'm not sure which one to go for. They all offer the same rates, same perks etc so who do people recommend in the current climate.

The one's I have had quotes off already are Best Payment Services and first 4 contractors who both offered me 90% which seemed to good to be true. They were both on the first page of my google search so presume they are at the top of the game. I did the usual google search to check the reputations and to see whether people have had good/bad experiences with either of them to which I found a varying response. Has anyone had experience with either of these companies?

What I did find worrying on a simple google search was that one of Best Payment Services directors, Nathan Cafearo is an Isle of Man resident and is linked to various other payroll companies many of which operate out of the Isle of Man, he even registered the domain name <mod snip> best-pay <mod snip> which for some reason seems to now be non existent when you click on it, that does seem strange, do the directors swap names of their businesses all the time, and that's why it's now called Best Payment Services, that's all I can think why best-pay website isn't now working. To be fair Best Payment Services is based in Cheshire, so that particular payroll firm of Nathan Cafearo appears to be UK based, or doesn't it actually matter whether its offshore, its just you hear a lot of bad press about offshore in the news all the time.

Look forward to hearing peoples opinions.

Thanks guys

P

They're at the top of google because they paid the most to be there.

Choosing a legitimate umbrella

[PMiddle877]

Hi everyone

I am new to contracting, and am starting a 6 month contract at the beginning of March and need to sign up with an umbrella company. There are so many around, and having spoken with a few, I'm not sure which one to go for. They all offer the same rates, same perks etc so who do people recommend in the current climate.

The one's I have had quotes off already are Best Payment Services and first 4 contractors who both offered me 90% which seemed to good to be true. They were both on the first page of my google search so presume they are at the top of the game. I did the usual google search to check the reputations and to see whether people have had good/bad experiences with either of them to which I found a varying response. Has anyone had experience with either of these companies?

What I did find worrying on a simple google search was that one of Best Payment Services directors, Nathan Cafearo is an Isle of Man resident and is linked to various other payroll companies many of which operate out of the Isle of Man, he even registered the domain name <mod snip> best-pay <mod snip> which for some reason seems to now be non existent when you click on it, that does seem strange, do the directors swap names of their businesses all the time, and that's why it's now called Best Payment Services, that's all I can think why best-pay website isn't now working. To be fair Best Payment Services is based in Cheshire, so that particular payroll firm of Nathan Cafearo appears to be UK based, or doesn't it actually matter whether its offshore, its just you hear a lot of bad press about offshore in the news all the time.

Look forward to hearing peoples opinions.

Thanks guys

P