Offshore Umbrella Co

[NervousRexx]

I've had a few sales calls from an 'offshore umbrella' company who claim can yield 90% take home.
The gist seems to be taking tax free dividends in some shape or form but the salesperson very vague.
Anyone had any similar calls?
All sounds too dodgy.

[malvolio]

All sounds too dodgy.

Ring ring...

"Hello"

"Hi, we're dodgy offshores ltd and we can make you 90% of your gross by pretending UK tax law doesn't exist"

"That sounds good, sign me up. You will of course guarantee to cover any back taxes, interest payments, fines and court costs?"

click... brrr.....

[Support Monkey]

I've had a few sales calls from an 'offshore umbrella' company who claim can yield 90% take home.
The gist seems to be taking tax free dividends in some shape or form but the salesperson very vague.Anyone had any similar calls?
All sounds too dodgy.

Really

[NervousRexx]

Ring ring...

"Hello"

"Hi, we're dodgy offshores ltd and we can make you 90% of your gross by pretending UK tax law doesn't exist"

"That sounds good, sign me up. You will of course guarantee to cover any back taxes, interest payments, fines and court costs?"

click... brrr.....

Done a bit of research and here's a quote from a website from one of these operators:-
Think the salesperson I spoke to mentioned a "CBT".

An efficient offshore umbrella solutionContracta is a leading provider of offshore umbrella payroll solutions for contractors. We utilise an CBT (Contractor Benefit Trust) structure and through a combination of salary and loan payments, you can take home an average return of 85% of your billed rate, through a robust and trusted payment structure.
An offshore solution built for youWe have built one of the most experienced and friendly teams on the market, offering an efficient offshore service and prompt payments week after week. We always listen to our clients, ensuring that we meet their exact requirements to cover a range of personal situations. Our rapid growth is testament to our service offering and winning approach.
Free consultationGive us a call today and let’s have a chat about your personal situation. Our personal account managers will discuss your options and help you to select the solution best suited to you.

[malvolio]

Done a bit of research and here's a quote from a website from one of these operators:-
Think the salesperson I spoke to mentioned a "CBT".

An efficient offshore umbrella solutionContracta is a leading provider of offshore umbrella payroll solutions for contractors. We utilise an CBT (Contractor Benefit Trust) structure and through a combination of salary and loan payments, you can take home an average return of 85% of your billed rate, through a robust and trusted payment structure.
An offshore solution built for youWe have built one of the most experienced and friendly teams on the market, offering an efficient offshore service and prompt payments week after week. We always listen to our clients, ensuring that we meet their exact requirements to cover a range of personal situations. Our rapid growth is testament to our service offering and winning approach.
Free consultationGive us a call today and let’s have a chat about your personal situation. Our personal account managers will discuss your options and help you to select the solution best suited to you.

I've said it before and I'll keep saying it. HMRC are cracking down hard on all kinds of offshore schemes and have made it very clear they're doing so. Existing users probably are OK, since they will be difficult to challenge but joining one now is probably suicidal.

A CBT is an EBT but for the self-employed. I totally fail to see how it makes any kind of a difference, but nobody has paid me several thousand pounds to render an opinion that it's OK.

Loan "income" isn't taxable, but there is nothing to stop HMRC making an assessment based on the benefit to you of having the money avaialble to spend, assuming you're daft enough to declare it on your annual SA. Oh, hang on, not declaring income....

Gets better and better, doesn't it.

[TheFaQQer]

Done a bit of research and here's a quote from a website from one of these operators:-
Think the salesperson I spoke to mentioned a "CBT".

An efficient offshore umbrella solutionContracta is a leading provider of offshore umbrella payroll solutions for contractors. We utilise an CBT (Contractor Benefit Trust) structure and through a combination of salary and loan payments, you can take home an average return of 85% of your billed rate, through a robust and trusted payment structure.
An offshore solution built for youWe have built one of the most experienced and friendly teams on the market, offering an efficient offshore service and prompt payments week after week. We always listen to our clients, ensuring that we meet their exact requirements to cover a range of personal situations. Our rapid growth is testament to our service offering and winning approach.
Free consultationGive us a call today and let’s have a chat about your personal situation. Our personal account managers will discuss your options and help you to select the solution best suited to you.

Looks like you need to ask this guy what he thinks.

[LisaContractorUmbrella]

Done a bit of research and here's a quote from a website from one of these operators:-
Think the salesperson I spoke to mentioned a "CBT".

An efficient offshore umbrella solutionContracta is a leading provider of offshore umbrella payroll solutions for contractors. We utilise an CBT (Contractor Benefit Trust) structure and through a combination of salary and loan payments, you can take home an average return of 85% of your billed rate, through a robust and trusted payment structure.
An offshore solution built for youWe have built one of the most experienced and friendly teams on the market, offering an efficient offshore service and prompt payments week after week. We always listen to our clients, ensuring that we meet their exact requirements to cover a range of personal situations. Our rapid growth is testament to our service offering and winning approach.
Free consultationGive us a call today and let’s have a chat about your personal situation. Our personal account managers will discuss your options and help you to select the solution best suited to you.

85% take home is 100% of your contract value less 15% for the fee to the offshore service provider - of course you will still have to complete a self-assessment (if they do it it's another couple of hundred quid) and pay tax on a nominal pre-agreed salary. Oh, and they will also advise that you keep back several grand just in case.

So in essence they will have taken 15% of your money to leave you liable for your own tax payments and at risk of HMR&C investigations which could result in penalties of 100% of the tax owed (on top of the tax owed)

Alternatively you can pay a company like mine less than £30 a week, not have to worry about tax returns and be able to sleep at night.

HTH

[northernladuk]

Alternatively you can pay a company like mine less than £30 a week, not have to worry about tax returns and be able to sleep at night.

HTH

I need a hot Vimto and a cuddle to sleep at night....

[LisaContractorUmbrella]

I need a hot Vimto and a cuddle to sleep at night....

You can have that for free NL

[geoff from contracta IOM]

85% take home is 100% of your contract value less 15% for the fee to the offshore service provider - of course you will still have to complete a self-assessment (if they do it it's another couple of hundred quid) and pay tax on a nominal pre-agreed salary. Oh, and they will also advise that you keep back several grand just in case.

So in essence they will have taken 15% of your money to leave you liable for your own tax payments and at risk of HMR&C investigations which could result in penalties of 100% of the tax owed (on top of the tax owed)

Alternatively you can pay a company like mine less than £30 a week, not have to worry about tax returns and be able to sleep at night.

HTH

You left out "and pay through the nose for the privilege"