Taking an Annuity rather than Dividends - Scam/Loan Charge mk2? Taking an Annuity rather than Dividends - Scam/Loan Charge mk2?
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  1. #1

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    Default Taking an Annuity rather than Dividends - Scam/Loan Charge mk2?

    A London number has been persistently phoning me for the last month and leaving messages from "Contractor Team UK".

    Answered the call today, and it was essentially a bit of a sales pitch for accounting for my limited company. Sales pitch essentially consisted of extracting funds from my limited company via an annuity rather than dividends, so that I can retain 15-20% of company profits, even after IR35 legislation. They have apparently identified a loop hole as annuities are not taxed, and HMRC currently use annuities so there's no risk of retrospective taxation.

    I am highly sceptical - it was a well-polished sales pitch, and a friendly person on the other end of the phone - but presumably this is one I shouldn't touch with your bargepole, never mind mine?! Has anyone else received similar approaches?

    If this was legitimate:
    - Why have they called me 5+ times already?
    - Why am I taking dividends and not annuities today?
    - Why aren't we all rejoicing the resurgence of the contractor market?

  2. #2

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    Note to self: search forums before posting.

    In summary: annuity is a bad idea for contractors. Don't do it.

  3. #3

    Contractor Among Contractors

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    Let me guess, it was from a withheld number as well..

  4. #4

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    You have already answered your question about the viability of this particular scheme.

    For future reference anything that is claiming to have an advantage in take home if your contract is inside IR35 is nonsense, since it iwll be the Client/agency withholding the PAYE in the first place, so no amount of scheming can claw it back.

  5. #5

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    Quote Originally Posted by PerfectStorm View Post
    Let me guess, it was from a withheld number as well..
    Mine wasn't but they are now blocked. Especially as they do not understand the word "No"
    "You’re just a bad memory who doesn’t know when to go away" JR

  6. #6

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    Annuity schemes only work robustly, when routed via a Dutch Antillean retired citizen duly appointed as a trustee of an Oude Joris Max 120 contractor trust.
    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

  7. #7

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    Yup just posted about this few days ago. Load of crap.... Avoid

    Sent from my LYA-L09 using Contractor UK Forum mobile app

  8. #8

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    Quote Originally Posted by PerfectStorm View Post
    Let me guess, it was from a withheld number as well..
    No - London number (020 3) - and it came across well polished... not your usual blagger.

  9. #9

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    Quote Originally Posted by fiisch View Post
    I can retain 15-20% of company profits, even after IR35 legislation.
    15-20%? Bargain!!!
    See You Next Tuesday

  10. #10

    Some things in Moderation

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    Scammers the lot of them.

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