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Previously on "PAYE.com"
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Very true, I stand (slightly) corrected.Last edited by Contractor UK; 17 March 2022, 16:50.
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Originally posted by malvolio
Your understanding is based on you believing the company to be honest and above board. Experience over the last 15 years or so has proven - to us, at least - that that is clearly not the case. There are many millionaires out there on the back of such promises.
Every quarter HMRC gets a report from every agency. And that report says agency XYZ paid xxx £30,000 for the work done by 0xsrwea31 between January to March 2022.
That figure is then checked against the RTI submission from xxx. And if it doesn't match, an adjustment will be made to your personal tax account to reflect the tax that hasn't been paid based on the amount submitted by the agency.
So it doesn't matter how xxx treats your money - HMRC just ignores it and taxes you on the lot.Last edited by Contractor UK; 17 March 2022, 16:50.
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Originally posted by 0xsrwea31 View PostI'm sorry, I thought this was an open forum to discuss the different umbrella companies. ...
I'm surprised to know the HMRC doesn't care about any of this and just accepts the standard way of getting taxes in.
I wonder what it would take for them to fully understand this and start accepting these models. Maybe we should have a government-run hedge fund lol
Here's the forum section that discusses schemes that people enter into which HMRC do not like:
https://forums.contractoruk.com/hmrc-scheme-enquiries/
It's not a matter to be taken lightly.
Last edited by Contractor UK; 17 March 2022, 16:46.
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I'm sorry, I thought this was an open forum to discuss the different umbrella companies. I'm not working for any umbrella company, I'm just a permanent employee trying to figure out how the contracting world works.
I just wanted your point of view on this as, from a theoretical point of view, if the fund generates returns that are higher than the money you put in, the HMRC would technically get more money than the amount due based on the gross contract rate.
I just found that aspect interesting and wanted to get your perspective/experience on that. I'm surprised to know the HMRC doesn't care about any of this and just accepts the standard way of getting taxes in.
I wonder what it would take for them to fully understand this and start accepting these models. Maybe we should have a government-run hedge fund lol
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WHO WE ARE AND HOW TO CONTACT US
PAYE.COM is a site operated under licence from Goldcroft Solutions Limited (Company Number: 368522) of 89 Nexus Way. Camana Bay, Grand Cayman KY1-9009, Cayman Islands by Paye Services Limited
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Originally posted by 0xsrwea31 View Post
Are you sure it's as simple as that? Have you actually read the website?
I think the key distinction here is that there is a risk in the investment. For instance, if 6 years from now, the hedge fund loses money, the employee needs to repay the loss.
I'm not sure this is 1:1 equal to the loan scheme in technical terms.
Money is paid by a client / agency for work done.
That work is a salary in HMRC's eyes and they want ALL their money ASAP.Last edited by eek; 4 March 2022, 08:34.
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Forgetting the tax for a moment, you are handing over a significant amount of money on trust.
"Investment powered by Liver Capital" - https://livercapital. com/governance/ Based in the Cayman Isles.Last edited by Contractor UK; 17 March 2022, 16:43.
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It's just scheme that HMRC will not like. There are loads that keep popping up and none have worked. It might be 100% QC compliant and all that because HMRC haven't seen it before but once they do they will come calling. In general you work for a wage, if you don't get paid a wage then HMRC are unlikely to like it. Simple as that really.
Working for any umbrella that do anything else than pay and tax you properly puts you in the cross hairs. Period.
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Are you sure it's as simple as that? Have you actually read the website?
I think the key distinction here is that there is a risk in the investment. For instance, if 6 years from now, the hedge fund loses money, the employee needs to repay the loss.
I'm not sure this is 1:1 equal to the loan scheme in technical terms.Last edited by Contractor UK; 17 March 2022, 16:40.
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Basically if it looks like salary HMRC sees it as salary.
And the agency will report it to HMRC as salary so HMRC know exactly how much tax they should be getting and will ask for itLast edited by Contractor UK; 17 March 2022, 16:40.
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PAYE.com
Hi everyone,
I've found this umbrella company called PAYE.com which seems quite interesting. I haven't been able to find any threads on them in the forum and, since they feel different from the other alternatives out there, I'd like to get your perspective.
They're basically a hedge fund that works like this:
- you get 75% of the gross rate in total, of which- 25% of that is paid as net minimum wage and taxes have been already applied on that beforehand- the remaining 50% is paid as 'cash advance'
- the remaining 25% of the gross rate is used by the hedge fund for their investments
- you get a return on the investment after 6 years from the tax year
They claim the difference with other umbrella companies is that they operate as a hedge fund without issuing any loans (you don't owe them any money - if any, they own you).
The key is they pay you using the cash advance (which doesn't have any taxes) for giving them 25% of your gross rate. Then, they generate profit by investing your money and finally they reward you for that after 6 years.
More details here:
<links removed>
Thanks in advance!Tags: None
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