15% Tax in the UK ??

[BlasterBates]

Interesting flicking through some Accountants on the CUK umbrella page, noticed Steed Solutions offers a service that gives you 85% of salary.

Is there a catch here ?

How do they do it ?

[NoddY]

Interesting flicking through some Accountants on the CUK umbrella page, noticed Steed Solutions offers a service that gives you 85% of salary.

Is there a catch here ?

How do they do it ?

I am thinking the catch is you end up doing bird.

[DimPrawn]

The catch is when the IR catch up with the accountants and you end up footing the bill.

[BlasterBates]

Well Parasol offers 60% which sort of sounds like you would expect for a brolly paying NI.

What sort of brollies offer a decent rate without "bird" ?

[zathras]

Interesting flicking through some Accountants on the CUK umbrella page, noticed Steed Solutions offers a service that gives you 85% of salary.

Is there a catch here ?

How do they do it ?

While I can't comment on specific systems used by brollies I would suggest it is doubtful that you can get that kind of return and certainly you would need to check if this is outside or inside IR£5. Being in a brolly will not get you out of the regulations.

I believe the question should be 'Is it too good to be true?'

Maybe one of those from Steed would come to the forum and discuss it as happened the last time someone raised a query over a composite/brolly company.

[BlasterBates]

What would be interesting would be a table, with

Tax Rate
Probability of being caught
Penalty (fine, jail sentence etc).

[Lucifer Box]

Normally that sort of return can only be achieved through dodgy practices such as EBTs or fictitious expenses. Best avoided.

[G8_Summit]

The "Brollys" that offer these sort of returns are either allowing huge expenses to be claimed (such as £75 per day hotel even when the expense hasn't been incurred) which is all fine and dandy until the IR come a-knocking and investigate - "Whats all this expenses stuff then Mr. Contractor ??" "Its OK cos my brolly's got this dispensation thing though innit" "but you didn't actually stay in a £75 hotel every night though - here's your tax bill and fine and interest thankyou very much".

Alternatively, composite companies like Giant Powerhouse claim large returns as long as your contract is outside IR35 by paying minimum wage and dividends. What they don't tell you about this return figure though is that you will probably have to pay extra tax on the dividends - this makes 15% more like 30-35%.

I think that covers it.

HTH