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Remuneration Trust and Limited Company / Umbrella

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    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

    #2
    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.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
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      #3
      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
      'CUK forum personality of 2011 - Winner - Yes really!!!!

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        #4
        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.
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          #5
          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.

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            #6
            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
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              #7
              Your accountant, or an accountant?

              If it was your accountant I would get a new one!
              Originally posted by Stevie Wonder Boy
              I can't see any way to do it can you please advise?

              I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

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                #8
                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?

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                  #9
                  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 Moyles̢۪ tax bill after scheme fails - AOL Money UK
                  The Chunt of Chunts.

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                    #10
                    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
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