Rousseau International

[Hermione]

I'm looking for advice on an umbrella company called Rousseau International. I signed up rather than go limited but am now having deep reservations. I get 82% as a self employed person with a minimal salary and the balance supposedly as dividends from an Llp. However, these 'dividends' are paid over as loans and when I've asked for a breakdown of deductions to establish what tax exactly is being deducted, I have been stonewalled.

Anyone deal with these people?

[Wary]

I'm looking for advice on an umbrella company called Rousseau International. I signed up rather than go limited but am now having deep reservations. I get 82% as a self employed person with a minimal salary and the balance supposedly as dividends from an Llp. However, these 'dividends' are paid over as loans and when I've asked for a breakdown of deductions to establish what tax exactly is being deducted, I have been stonewalled.

Anyone deal with these people?

See http://forums.contractoruk.com/accou...-opinions.html

[LisaContractorUmbrella]

I'm looking for advice on an umbrella company called Rousseau International. I signed up rather than go limited but am now having deep reservations. I get 82% as a self employed person with a minimal salary and the balance supposedly as dividends from an Llp. However, these 'dividends' are paid over as loans and when I've asked for a breakdown of deductions to establish what tax exactly is being deducted, I have been stonewalled.

Anyone deal with these people?

If you are being paid dividends, however they are being disguised then the company in question is breaking the law - the Managed Service Company legislation was introduced several years ago to stop this sort of thing happening. If the scheme is loan based there are loads of threads on this forum which will explain the various pitfalls.

At the end of the day, if you haven't paid what HMR&C consider to be the correct amount of tax it is you that will be liable and not your umbrella company so I would either move providers and work with a standard umbrella, paying tax through standard PAYE or make sure that you have enough money put aside over the next 6-7 years to pay any additional liability

[underpaidPhil]

I have spoken to Rousseau. I think they use the term dividend incorrectly in order to talk to people who perhaps might have experience with limited companies. The payment is in fact a commercial loan and not a dividend. This comes under a so called "arms length agreement"! I believe these payments were specifically excluded in the last round of tax legislation.

I dont know if that helps though!

[Waldorf]

I have spoken to Rousseau. I think they use the term dividend incorrectly in order to talk to people who perhaps might have experience with limited companies. The payment is in fact a commercial loan and not a dividend. This comes under a so called "arms length agreement"! I believe these payments were specifically excluded in the last round of tax legislation.

I dont know if that helps though!

Run for the hills! I would avoid like the plague.

I read today that the budget next week will have a anti avoidance clause so this will probably be another nail in the coffin of these loan schemes and their variants.

[LisaContractorUmbrella]

I have spoken to Rousseau. I think they use the term dividend incorrectly in order to talk to people who perhaps might have experience with limited companies. The payment is in fact a commercial loan and not a dividend. This comes under a so called "arms length agreement"! I believe these payments were specifically excluded in the last round of tax legislation.

I dont know if that helps though!

Think I'd be a bit worried about a company that can't even get its own terminology right

[Mairead QA]

After two budgets...

So since the last post on this thread they are still up and running... It all sounded too good to be true. I have just declined to join them, it just didnt seem right and also it's very difficult to find out information on the web. I am now getting a lot of phone calls from them trying to convince me that I should go with them... its turned into a hard sell!!

[Andy Hallett]

The important thing to check here is whether they make you sign a Social Contract.

On a serious note:

Swiss Company = Check
>80% Return = Check
Loans = Check

What could possibly go wrong?

Wouldn't want to be any of these three when HMRC get around to the 2013 returns.

https ://rousseauinternational.com/testimonials.aspx

[LisaContractorUmbrella]

So since the last post on this thread they are still up and running... It all sounded too good to be true. I have just declined to join them, it just didnt seem right and also it's very difficult to find out information on the web. I am now getting a lot of phone calls from them trying to convince me that I should go with them... its turned into a hard sell!!

If it sounds too good to be true then it very probably is so good call