I am getting the 'hard sell' from Rousseau International. They are claiming they have a loophole to avoid IR35 but seem unwilling or unable to explain it clearly to me.
The plan seems to be:
I raise a timesheet to their brolly
The brolly invoices my client
They pay me £300 net from the invoice and cater for the tax and NI.
I 'lend' the LLP a nominal amount (lets say 50K)
The LLP repays this loan at a rate that uses up the remainder of the invoice value. This way the money comes to me as a loan repayment and is therefore neither income or captial growth......
BUT... I have never transferred any money into the LLP so I am concerned that one of a nubmer of things may occur. A) The LLP goes into receivership and I am comitted to finding the actual lent amount to balance their books. B) the LLP goes bust meaning it cannot 'repay' the loan and the balance in the brolly is inaccessible. C) HMRC will lift the veil of incorporation and still come back at me for the unpaid tax AND will regard the scheme as money laundering.
Does anyone have any experience of this type of scheme or of Rousseau International themselves. They are predicting I could keep 82% of the net invice value which seems akin to the pre IR35 tax rules. Is there anyone else who offers this kind of scheme and if so, what is there to prevent me from forming my own LLP and running the same process myself and saving their admin commission.
TIA
Obiron
The plan seems to be:
I raise a timesheet to their brolly
The brolly invoices my client
They pay me £300 net from the invoice and cater for the tax and NI.
I 'lend' the LLP a nominal amount (lets say 50K)
The LLP repays this loan at a rate that uses up the remainder of the invoice value. This way the money comes to me as a loan repayment and is therefore neither income or captial growth......
BUT... I have never transferred any money into the LLP so I am concerned that one of a nubmer of things may occur. A) The LLP goes into receivership and I am comitted to finding the actual lent amount to balance their books. B) the LLP goes bust meaning it cannot 'repay' the loan and the balance in the brolly is inaccessible. C) HMRC will lift the veil of incorporation and still come back at me for the unpaid tax AND will regard the scheme as money laundering.
Does anyone have any experience of this type of scheme or of Rousseau International themselves. They are predicting I could keep 82% of the net invice value which seems akin to the pre IR35 tax rules. Is there anyone else who offers this kind of scheme and if so, what is there to prevent me from forming my own LLP and running the same process myself and saving their admin commission.
TIA
Obiron
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