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Previously on "Surely this can't be legal/moral?"

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  • LisaContractorUmbrella
    replied
    Originally posted by pacharan View Post
    I actually got told by a client co that they would only renew if I went with a brolly.

    Was a stipulation made by their end customer who was a local gov organization.
    I would guess that this was because they perceive less risk from legislation if an individual is employed by an umbrella company rather than self-employed although status and therefore liability are determined by tribunals and therefore this perspective can't be relied upon. And why have you dredged up WIM121??????

    Leave a comment:


  • northernladuk
    replied
    This is the third post you have quoted Wim121 today and you dredged this up from 8th August? Something going on here? You two coming out because it is Feb 14th?

    Leave a comment:


  • pacharan
    replied
    Originally posted by wim121 View Post
    I know exactly what djshuggg means. Some give you a list of "preferred umbrellas", some dictate you have to use their agreed one.

    The consequences if you don't go along with it Lisa is they won't give you the assignment and might not bother offering you any in the future. Some may be able to afford to pass up work, but a lot of us just have to get in bed with the devil and hope everything works out.

    Some agencies may say when pressed, they will pay you through your own limited company if you have one.
    I actually got told by a client co that they would only renew if I went with a brolly.

    Was a stipulation made by their end customer who was a local gov organization.

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by Dave Copeland View Post
    Thanks to those who responded. I am now talking with an accountant to go the Ltd. Co. route.

    I like to sleep at night. Dave
    Wise man

    Leave a comment:


  • Dave Copeland
    replied
    Thanks to those who responded. I am now talking with an accountant to go the Ltd. Co. route.

    I like to sleep at night. Dave

    Leave a comment:


  • Wanderer
    replied
    Originally posted by Dave Copeland View Post
    Thanks for the comments so far. I would be interested also to get feedback from anyone who has used such a scheme.
    I'm sure they have lots of satisfied customers. What the customers don't know is that 6 years down the line they could get investigated, the off shore company disappears into thin air (along with their "guarantees") and the contractors may get lumped with a huge tax bill. You may get away with it but these schemes are widely considered to be risky.

    Leave a comment:


  • Dave Copeland
    replied
    Thanks for the comments so far. I would be interested also to get feedback from anyone who has used such a scheme. Can anyone advise if the forum rules prevent me from giving details of the company. Dave

    Leave a comment:


  • DaveB
    replied
    Originally posted by Dave Copeland View Post
    Firstly I am new around this topic and contracting generally and hope I am in copmpliance with forum rules in posting this. My problem is that I have been offered a contract which must be run through a Ltd. Co. or umbrella. Speaking with an accountent yesterday I was offered a tax planning strategt which without naming the supplier I can describe as below

    A UK company invoicves client.
    I am an employee of the UK company.
    I get paid minumum wage through PAYE
    Balance of income is held in trust (IOM Trustees)
    Trust rules are that trust can only operate for my benefit.
    Each month I borrow my income from the trust.
    The loan is never repaid
    They forecast net to me of 81% of contact value.

    Seems great but I am nervous re the "loan" and "trust" elements.

    Does anyone have experience of such schemes or comment generally

    Thanks
    a contract which must be run through a Ltd. Co. or umbrella
    This is not a problem, it is normal practice.

    Talk to another accountant, one of the ones who post on here would be a good start (Nixon Williams, SJD, InTouch are the ones I can think of right now).

    Anything involving offshore trusts, currency exhange schemes or which promises to return 80% or more of your day rate should, IMO, be avoided at all costs.

    Probably 90% of the people on this forum operate under the Ltd Co. + Accountant route, the rest generally use a brolly or do their own accounts.

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by Dave Copeland View Post
    Firstly I am new around this topic and contracting generally and hope I am in copmpliance with forum rules in posting this. My problem is that I have been offered a contract which must be run through a Ltd. Co. or umbrella. Speaking with an accountent yesterday I was offered a tax planning strategt which without naming the supplier I can describe as below

    A UK company invoicves client.
    I am an employee of the UK company.
    I get paid minumum wage through PAYE
    Balance of income is held in trust (IOM Trustees)
    Trust rules are that trust can only operate for my benefit.
    Each month I borrow my income from the trust.
    The loan is never repaid
    They forecast net to me of 81% of contact value.

    Seems great but I am nervous re the "loan" and "trust" elements.

    Does anyone have experience of such schemes or comment generally

    Thanks
    You should be nervous - please refer to the BN66 thread in Accounting and Legal

    Leave a comment:


  • Dave Copeland
    replied
    Legal Moral

    Firstly I am new around this topic and contracting generally and hope I am in copmpliance with forum rules in posting this. My problem is that I have been offered a contract which must be run through a Ltd. Co. or umbrella. Speaking with an accountent yesterday I was offered a tax planning strategt which without naming the supplier I can describe as below

    A UK company invoicves client.
    I am an employee of the UK company.
    I get paid minumum wage through PAYE
    Balance of income is held in trust (IOM Trustees)
    Trust rules are that trust can only operate for my benefit.
    Each month I borrow my income from the trust.
    The loan is never repaid
    They forecast net to me of 81% of contact value.

    Seems great but I am nervous re the "loan" and "trust" elements.

    Does anyone have experience of such schemes or comment generally

    Thanks

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by Steven@Parasol View Post
    Rubbish, we for one do not pay referrals to agents in any shap or form.

    We are on the majority of PSLs though because of our compliance track record and membership of the FCSA. Its about protection and risk mitigation, not profit.
    Ditto (although not FCSA) bit. Most umbrella companies are now vary wary of becoming involved with paying referal fees because of the anti-bribery legislation that was published recently - any payment that is deemed to influence the decision of the agency could be considered to be a bribe.

    Leave a comment:


  • Steven@Parasol
    replied
    Originally posted by Harry@SC Lee Accountant Ltd View Post
    Your agent is business people so they just want to get more commission from their preferred umbrella to get more money out of you.
    Rubbish, we for one do not pay referrals to agents in any shape or form.

    We are on the majority of PSLs though because of our compliance track record and membership of the FCSA. Its about protection and risk mitigation, not profit.

    Leave a comment:


  • Guest's Avatar
    Guest replied
    Your agent is business people so they just want to get more commission from their preferred umbrella to get more money out of you.


    Originally posted by wim121 View Post
    I know exactly what djshuggg means. Some give you a list of "preferred umbrellas", some dictate you have to use their agreed one.

    The consequences if you don't go along with it Lisa is they won't give you the assignment and might not bother offering you any in the future. Some may be able to afford to pass up work, but a lot of us just have to get in bed with the devil and hope everything works out.

    Some agencies may say when pressed, they will pay you through your own limited company if you have one.

    Leave a comment:


  • wim121
    replied
    Originally posted by djshuggg View Post
    Funny last but one contract i had i was told i HAD to use Parasol.So your comment about an agent not forcing you to use a particular agency is total botty water.
    Originally posted by LisaContractorUmbrella View Post
    Were you told what the consequences would be if you didn't go along with it?
    I know exactly what djshuggg means. Some give you a list of "preferred umbrellas", some dictate you have to use their agreed one.

    The consequences if you don't go along with it Lisa is they won't give you the assignment and might not bother offering you any in the future. Some may be able to afford to pass up work, but a lot of us just have to get in bed with the devil and hope everything works out.

    Some agencies may say when pressed, they will pay you through your own limited company if you have one.

    Leave a comment:


  • LisaContractorUmbrella
    replied
    Originally posted by djshuggg View Post
    Funny last but one contract i had i was told i HAD to use Parasol.So your comment about an agent not forcing you to use a particular agency is total botty water.
    Were you told what the consequences would be if you didn't go along with it?

    Leave a comment:

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