Up to 90%

[DonkeyRhubarb]

Thanks for the clarification... I know it's too good to be true. I was just amazed at the amount of companies out there offering these vehicles.

Just amazed me how these companies are allowed to get away with such things

What amazes me more is that offering these "vehicles" still appears to be a viable business.

There must be a lot more dumb ass punters out there than I thought.

[LisaContractorUmbrella]

What amazes me more is that offering these "vehicles" still appears to be a viable business.

There must be a lot more dumb ass punters out there than I thought.

People are always tempted by the promise of something for nothing unfortunately

[DonkeyRhubarb]

People are always tempted by the promise of something for nothing unfortunately

10 years ago, even 5 years ago, I could understand people being tempted.

But in the current climate? You'd have to be from Mars not to be aware of the war going on.

[smeg35]

Blind you say.
But isn't the issue most of the people on these schemes don't do the due diligence (why they don't do this, I will never understand) and are blind sided by the returns and put their faith in the so called professionals advising them.

It appears to me many people think the risk is worthwhile as the chances of slipping through the HMRC net is pretty likely, added to this the fact even if the HMRC cotton on to you the odds on getting the money back is slim and will definitely be protracted (from the research I have done on the Internet). Seems like a risk that many will think is worth taking.

[LisaContractorUmbrella]

10 years ago, even 5 years ago, I could understand people being tempted.

But in the current climate? You'd have to be from Mars not to be aware of the war going on.

Yes but don't you think that we're far more aware of the potential risks than newbies coming into the business? I know tax avoidance is a big issue in the media at the moment but I think most people only think of it in connection with Google and Amazon and the such like. We've all been trying to get the message out there for years but if you get someone who's ignorant of the complex tax legislation that applies to the industry who's then contacted by a brilliant and plausible salesman telling them something they want to hear.....

[LisaContractorUmbrella]

Blind you say.
But isn't the issue most of the people on these schemes don't do the due diligence (why they don't do this, I will never understand) and are blind sided by the returns and put their faith in the so called professionals advising them.

It appears to me many people think the risk is worthwhile as the chances of slipping through the HMRC net is pretty likely, added to this the fact even if the HMRC cotton on to you the odds on getting the money back is slim and will definitely be protracted (from the research I have done on the Internet). Seems like a risk that many will think is worth taking.

Try telling that to the thousands of contractors on the receiving end of an APN.

[smeg35]

Lol... Point taken

But if they were using one if these schemes and received an APN id be more likely to say 'you reap what you sow'

But as was stated in an earlier post the system is way too complex and it's way too easy to pull the wool over people's eyes who really want what they hear to be true

[AnotherGuy]

Lots of these schemes get their customers via referrals from currently happy and completely blind contractors, that refer friends and family to their umbrella/scheme because it has been working for them for many years and they think it is totally legal.

They tried with me, and that's how they get lots of newbies aboard I'm afraid.

[LisaContractorUmbrella]

Lots of these schemes get their customers via referrals from currently happy and completely blind contractors, that refer friends and family to their umbrella/scheme because it has been working for them for many years and they think it is totally legal.

They tried with me, and that's how they get lots of newbies aboard I'm afraid.

And the £500+ referral fees probably help

[SlipTheJab]

TBH As a newbie its easy to get caught. My first contract (around 5 years ago) I almost ended up in one via a refererral. Luckily the agency wouldn't deal with the 'Umbrella' (I use that term loosely as I now know it was far from a standard brolly setup) that the firm we're using and I went Ltd. It's only after reading about these schemes on here that I realise what a lucky escape I had. As for it still going on... the last place I was at a Kiwi contractor was bragging about using some New Zealand based outfit that meant he was paying less than 1% tax in the UK, this despite working and living in London full time