Got a phone call today from some bloke offering "contractor services". Told him I wasn't interested. he asked if it was worth sending me a mail, so I told him he could do whatever he wanted with his own time and hung up. A short while later, I get the mail below. Thought I would post it here so NLUK can do a search for me 
So, is this something I should go for ??
Edit - Can anyone guess what the RDE in their name stands for ? Must have been made by the same branding agency that came up with "The Bon Appetit Chinese Restaurant"
Thank you for your time today. (Particularly like this bit)
The majority of contractors that we speak with are in the disadvantageous position whereby if asked to describe what they do for a living would probably answer with the phrase “I’m a contractor”. This will most likely also be reflected in the type and quality of advice that they are given by their peers and professional advisers such as accountants. This is why so many fall into the trap of believing that salary and dividend is the best/only option available.
On the other hand, whilst most successful businesses will engage the services of an accountant for their commercial governance, tax returns and book keeping, the majority will additionally engage the services of a specialist tax consultancy in order to optimise access to available profits.
RDE Wealth have worked and continue to work with various Tax Chambers and Tax Boutiques across the country and have worked with various providers over a number of years. The great advantage that this has given us is that we have been able to see which areas HMRC have attacked with success and more importantly the areas where HMRC either don’t bother trying to attack or they have failed in their attempts.
While you have probably seen a huge drive by HMRC to clamp down on any type of scheme used by contractors, there is a particular area of business profit/tax planning that remains unaltered due to its success over the last 30 years or so in helping companies to pay significantly less and in some cases no corporation tax.
The following two attachments will give further information on the:
Trust Planning – Looks at the history of Trusts and how a Ltd Company can use one to cut its Corporation Tax Liability to zero.
Benefits From A Trust – Examines how discretionary benefits from a Trust can be advantageous to beneficiaries and focuses on two House of Lords rulings stating that loans from a Trust cannot be classed as income.
Previously this type of planning hasn’t been available to contractors for a couple of reasons:
1) The planning was only available to larger businesses with turnovers in the millions
2) HMRC don’t necessarily view contractors/freelancers as genuine businesses
RDE have a solution which eradicates both of these hurdles – allowing contractors to benefit from increased tax efficiency (even with the soon to be introduced changes with dividends and expenses)
Below are figures based on a 20 day working month.
If you work 20 days at a rate of £300 that will equate to £6,000. You will also receive the 20% VAT (20% of £6,000) so £7,200 will be paid into your Ltd Company.
Assuming you are on the Flat-rate VAT scheme as a Consultancy at 14.5% you will only have to pay £1,044 (14.5% of £7,200) leaving £6,156.
Assuming you are claiming around £700 in expenses each month, leaving £5,456.
A typical salary to pay yourself is £833 each month so you will just transfer this amount straight into your personal account leaving £4,623 which is the company profit for the period.
You can transfer as much of this profit to the Trust as you deem appropriate. The amount contributed will reduce the company profit thus reducing the corporation tax liability.
Once the funds are in Trust, the Trustees are able to issue loans to individuals with whom they have a formalised commercial agreement.
Individuals who qualify in line with the above are eligible to request a commercial payment to the value of £3,883.32 (84% with the rest taken as fees).
This amount, added to the salary (£833) and expenses (£700) totals £5,416.32
£5,416.32 / £6,000 = 90.27% *Please note you would have to pay for an accountant with this money. Our recommended accountant charges £75p/m, however you are welcome to continue with your own.
RDE also provide a solution to the “in business” tests through a support consultancy which helps additionally with IR35 issues.
Please see the third attachment for further details:
Additional Services – Gives details of the Contractor Support Network and also the (optional) Accountancy Services.
I do hope you have found this information to be of interest and relevant to yourself.
I will touch base in the next few days to answer any questions that you may have. Please feel free to contact me in the meantime.
So, is this something I should go for ??
Edit - Can anyone guess what the RDE in their name stands for ? Must have been made by the same branding agency that came up with "The Bon Appetit Chinese Restaurant"
Thank you for your time today. (Particularly like this bit)
The majority of contractors that we speak with are in the disadvantageous position whereby if asked to describe what they do for a living would probably answer with the phrase “I’m a contractor”. This will most likely also be reflected in the type and quality of advice that they are given by their peers and professional advisers such as accountants. This is why so many fall into the trap of believing that salary and dividend is the best/only option available.
On the other hand, whilst most successful businesses will engage the services of an accountant for their commercial governance, tax returns and book keeping, the majority will additionally engage the services of a specialist tax consultancy in order to optimise access to available profits.
RDE Wealth have worked and continue to work with various Tax Chambers and Tax Boutiques across the country and have worked with various providers over a number of years. The great advantage that this has given us is that we have been able to see which areas HMRC have attacked with success and more importantly the areas where HMRC either don’t bother trying to attack or they have failed in their attempts.
While you have probably seen a huge drive by HMRC to clamp down on any type of scheme used by contractors, there is a particular area of business profit/tax planning that remains unaltered due to its success over the last 30 years or so in helping companies to pay significantly less and in some cases no corporation tax.
The following two attachments will give further information on the:
Trust Planning – Looks at the history of Trusts and how a Ltd Company can use one to cut its Corporation Tax Liability to zero.
Benefits From A Trust – Examines how discretionary benefits from a Trust can be advantageous to beneficiaries and focuses on two House of Lords rulings stating that loans from a Trust cannot be classed as income.
Previously this type of planning hasn’t been available to contractors for a couple of reasons:
1) The planning was only available to larger businesses with turnovers in the millions
2) HMRC don’t necessarily view contractors/freelancers as genuine businesses
RDE have a solution which eradicates both of these hurdles – allowing contractors to benefit from increased tax efficiency (even with the soon to be introduced changes with dividends and expenses)
Below are figures based on a 20 day working month.
If you work 20 days at a rate of £300 that will equate to £6,000. You will also receive the 20% VAT (20% of £6,000) so £7,200 will be paid into your Ltd Company.
Assuming you are on the Flat-rate VAT scheme as a Consultancy at 14.5% you will only have to pay £1,044 (14.5% of £7,200) leaving £6,156.
Assuming you are claiming around £700 in expenses each month, leaving £5,456.
A typical salary to pay yourself is £833 each month so you will just transfer this amount straight into your personal account leaving £4,623 which is the company profit for the period.
You can transfer as much of this profit to the Trust as you deem appropriate. The amount contributed will reduce the company profit thus reducing the corporation tax liability.
Once the funds are in Trust, the Trustees are able to issue loans to individuals with whom they have a formalised commercial agreement.
Individuals who qualify in line with the above are eligible to request a commercial payment to the value of £3,883.32 (84% with the rest taken as fees).
This amount, added to the salary (£833) and expenses (£700) totals £5,416.32
£5,416.32 / £6,000 = 90.27% *Please note you would have to pay for an accountant with this money. Our recommended accountant charges £75p/m, however you are welcome to continue with your own.
RDE also provide a solution to the “in business” tests through a support consultancy which helps additionally with IR35 issues.
Please see the third attachment for further details:
Additional Services – Gives details of the Contractor Support Network and also the (optional) Accountancy Services.
I do hope you have found this information to be of interest and relevant to yourself.
I will touch base in the next few days to answer any questions that you may have. Please feel free to contact me in the meantime.
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