Originally posted by NotAllThere
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Umbrella companies using growth share schemes
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Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k. -
Originally posted by Fred Bloggs View PostSince the scheme is basically a sham scheme (solely designed to avoid or evade tax, with no other purpose) it will be an epic fail under GAAR anyway.
Even if, for whatever reason, HMRC don't GAAR it, they'll get the Govt to retro clobber it.Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.Comment
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Originally posted by Fred Bloggs View PostI am fascinated that there's still naive/greedy people out there who believe this stuff works. There must be customers, or there would be no market for this.
Let's be very clear, this is nothing new. Ever since the year dot when income and capital became taxed differently, there has been a desire to convert income into capital gains, and vice versa. It's nothing new and in many cases it's a recognised tax strategy. However, if this is a scheme being marketed to naive/greedy contractors, then just like all the other schemes before, it will result in pain for the client and gain for the scheme promoter who will disappar without trace. Be under no doubt, if anyone is thinking of using this or any scheme that turns wages into something else not fully subject to PAYE then it's going to end badly for you.
Most of us have heard it all before. HMRC have never been better equipped to deal with these outrageous schemes and the gullible/greedy users of them. It's going to end badly.
I hope NAT is soon able to name names for the benefit of everyone out there who doesn't believe in magic beans ot pixies dust solutions to taxation.
Meanwhile, if you really want to convert your income to a capital gain free of tax - I recommend 100% you start investing in an ISA. After you have paid your tax on your wages, naturally. All gains in an ISA are genuinely, tax free.Comment
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Originally posted by NotAllThere View PostNot quite. But it is highly misleading.
Growth Share plans attempt to replicate employee share plans (restricted to listed companies) to unlisted/private held companies. On that basis, they seem not entirely unreasonable. Of course HMRC take a dim view, and there are warnings that such schemes - even where they do replicate employee share plans and really are linked to company growth - will soon be/are being under attack.Comment
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Originally posted by Isuvu View PostThere are many who are new to IR35, and contracting so no, this isn’t naive, it’s about being informed.. as you lot on this board are so in the know I find it quite Surprising that none of you have come across this plan, scheme, option either! ������������*♀️
I am merely asking questions, not looking to be attacked.. as I’ve said previously..So calm down dear and wind that uppity neck in ������
https://www.contractoruk.com/forums/...ml#post2775153
Promoters have come up with all manner of devices over the years. I'm not aware of a single one that has succeeded, which is why we urge people to avoid like the plague.Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.Comment
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By the way, and maybe it's just my perception, but you seem to be implying that people should have an open mind about this arrangement.
If that's the case, then I couldn't disagree more.
It doesn't matter what the underlying mechanism is, if the net result is not paying full PAYE tax/nics on earned income then it will end in tears.Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.Comment
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A new member who signed up yesterday.
A new "wheeze" for improving take-home to 71% in an example which was later edited out (thanks NAT).
No details of the offering company either.
Can anyone else smell bulltulip?Comment
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I think we'll call it a day there. I'll update the OP's first post to make it clear.
Tl;DR Growth share schemes a bad thing, don't get involvedDown with racism. Long live miscegenation!Comment
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