Restructure of Ltd in face of budget changes

[cojak]

A contractor mate has told me they've changed their operations from standard PSC Ltd to a part-umbrella company part-limited co, running out of the Isle of Man as this provides a tax break. Apparently will provide 80-83% tax efficiency.

Wondered if anyone else has heard of this or restructured in light of the upcoming changes?

HAHAHAHA!

[cojak]

Indeed!


If it was anyone else I'd say the same, but this guy is an experienced contractor - been in the game 10+ years and generally on most matters I'd trust his opinion.
Hence my query here - it doesn't sound right to me, but on the other hand I find it hard to believe as a seasoned contractor he would fall for a scam.

Then I'd go back to trusting him with your bar order, but make sure he gives you your change back as he's not to be trusted with money.

[jmo21]

If it was anyone else I'd say the same, but this guy is an experienced contractor - been in the game 10+ years and generally on most matters I'd trust his opinion.
Hence my query here - it doesn't sound right to me, but on the other hand I find it hard to believe as a seasoned contractor he would fall for a scam.

There have been a lot of these schemes around for years, and many people used them fine. It is only much later, when HMRC come calling that everything falls apart. It turns out the company don't want to know, you can't get answers, they eventually fold, and you are left holding the can.

"But, but... they SAID it was legal".

"HMRC approved", "So and So QC's legal opinion".

It's sad, but it has happened to a lot of people, with a lot of schemes.

Your mate just hasn't been caught up in it yet.

Any contractor going with any of these schemes after all that has happened the last few years must have rocks in their head.

[Felix22]

Thanks for your responses; having followed up on some of your comments and done some research I'd agree it's just not worth the risk.
Plus on the diminishing day rate I command I don't think it's worth the hassle relative to the potential saving.
So I'll continue to plod on with my Ltd. As for the other guy... he's already signed and sealed into the scheme so time will tell...