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READ ME before choosing your umbrella

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    READ ME before choosing your umbrella

    Read this first before picking up the phone.

    Guidance (on) Providers of Tax Avoidance Schemes (POTAS)

    And read this as well 10 things you need to know about tax avoidance

    Be aware that by using a legitimate umbrella that will pay the expected amount of tax and NI, you will receive approximately 65% of your day rate.

    If you pay less than 35% tax (>65% take home) then I would imagine HMRC are NOT receiving PAYE amounts and will come after you for the gap.

    There are sanctions and fines that HMRC can impose on these dodgy providers, but I've never heard of any company being caught and I don't know anywhere where these penalties are published, and that's the main deterrent in my book.
    Last edited by cojak; 7 July 2017, 09:47. Reason: Reflect new HMRC sanction on dodgy umbrellas
    "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."
    - Voltaire/Benjamin Franklin/Anne Frank...

    #2
    If someone wanted to complain to HMRC, is there a phone number to call?

    Comment


      #3
      Hmmm.. Good question - I'll have a look.
      "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."
      - Voltaire/Benjamin Franklin/Anne Frank...

      Comment


        #4
        Originally posted by cojak View Post
        Hmmm.. Good question - I'll have a look.
        Here you go https://www.gov.uk/government/organi.../tax-avoidance

        Comment


          #5
          Originally posted by lucycontractorumbrella View Post


          I just tried to call this. The conversation: -
          them: HMRC counter avoidance
          me : is this the right number to report a tax avoidance scheme?
          them : errr - might be. where did you get this number?
          me: internet
          them : errr - I will ask

          Someone else then came on the line and filled in a form which I was told would be passed onto a specialist investigation unit.

          I asked if there would be any feedback and was told that there would definitely not be. I then pointed out that myself, and many others on CUK, feel that HMRC do not do enough to tackle promoters. I was told that this was well beyond his pay grade.

          Comment


            #6
            Originally posted by BrilloPad View Post
            I asked if there would be any feedback and was told that there would definitely not be. I then pointed out that myself, and many others on CUK, feel that HMRC do not do enough to tackle promoters. I was told that this was well beyond his pay grade.
            Maybe snail mail might be worth a go - apparently, they respond better to the old fashioned way of communicating

            HMRC Fraud Hotline
            Cardiff
            CF14 5ZN
            United Kingdom

            Comment


              #7
              Take home thats too goo to be true

              Originally posted by cojak View Post
              Read this first before picking up the phone.

              Guidance (on) Providers of Tax Avoidance Schemes (POTAS)

              And read this as well 10 things you need to know about tax avoidance

              Be aware that by using a legitimate umbrella that will pay the expected amount of tax and NI, you will receive approximately 65% of your day rate.

              If you pay less than 35% tax (>65% take home) then I would imagine HMRC are NOT receiving PAYE amounts and will come after you for the gap.

              There are sanctions and fines that HMRC can impose on these dodgy providers, but I've never heard of any company being caught and I don't know anywhere where these penalties are published, and that's the main deterrent in my book.
              I agree entirely, this is an absolute time bomb for an awful lot of contractors who have been tempted by these schemes.

              If its too good to be true then I'm afraid that it is.

              The other thing to be aware of is that if you don't have a complete NI contribution record over a minimum of 30 years then you will have a nasty shock when you come to retire.....no full state pension

              Comment


                #8
                Originally posted by Beacon Umbrella View Post
                The other thing to be aware of is that if you don't have a complete NI contribution record over a minimum of 30 years then you will have a nasty shock when you come to retire.....no full state pension
                That would be a very long time on the bench for a contractor either that or maybe it is time to find a permie role.

                Comment


                  #9
                  Originally posted by Beacon Umbrella View Post
                  I agree entirely, this is an absolute time bomb for an awful lot of contractors who have been tempted by these schemes.
                  And let's not forget those dodgy 'tax efficient' umbrellas either - they're caught too...
                  "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."
                  - Voltaire/Benjamin Franklin/Anne Frank...

                  Comment


                    #10
                    Due diligence and your part in it.

                    For your due diligence look up the company in Companies House: https://www.gov.uk/get-information-about-a-company

                    Find the names of the Directors and look them up, find out what other companies the have been associated with.

                    Then go to the HMRC Scheme Enquiries Forum and do a search for a few of the companies associated with that Director/s (it will never be only one company).

                    If you don't find anything in there - excellent. That is one more step (not the only one mind) that may indicate that they are a 'proper' umbrella.

                    If you do find the names of those old companies popping up in a forum indicative of pain and misery of many years standing, however...
                    "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."
                    - Voltaire/Benjamin Franklin/Anne Frank...

                    Comment

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