Choice Premier - Foreign Loan Scheme...

[DonkeyRhubarb]

I think switching schemes might actually increase risk.

If you receive an aspect enquiry for scheme 1 then it seems inevitable the scheme 2 will also be investigated and likely challenged.

If somebody else on either scheme 1 or scheme 2 receives an aspect enquiry then this is likely to cause (eventually as part of the challenging) an enquiry on all users of either scheme.

I have to disagree.

Many schemes have to be declared on your tax return via a Scheme Reference Number. It is almost automatic these days that the presence of an SRN triggers an enquiry.

HMRC have new powers to request lists of users from promoters so even if the scheme isn't disclosed on your return (eg. because it's a loan thingy) you are still likely to be investigated.
http://www.hmrc.gov.uk/aiu/guidance-august-2011.pdf

I think anyone who uses a scheme should forget the idea of staying under HMRC's radar.

It's what happens after you get investigated that counts and the more you spread the risk around different arrangements the less chance you've got of losing everything.

I stand by my advice: don't bet the farm on a single scheme.

[prozak]

I'm glad I left my scheme. I'm equally glad I was not in it for long.

the only way to stop these schemes is by having the providers on the hook for the tax if it is successfully challenged.

You'll then either get water tight schemes or none at all.

[BlasterBates]

I'm glad I left my scheme. I'm equally glad I was not in it for long.

the only way to stop these schemes is by having the providers on the hook for the tax if it is successfully challenged.

You'll then either get water tight schemes or none at all.

The trouble is they go bankrupt and start off a new one. There are always new inexperienced contractors that'll go for these schemes.

[cojak]

The trouble is they go bankrupt and start off a new one. There are always new inexperienced contractors that'll go for these schemes.

And add a good chunk of avarice and you've got yourself a magical combination.

[csf6gom]

Did you make a decision?

Am new to all this so apologies in advance if you heard all this before and are bored of the question.

Contracting is new to me and am looking to obtain my first contract, I am looking at the usual options of whether to be Ltd etc.........i saw a company called Choice Premier advertising good returns on your income. A little too good to be true......was just wondering if anyone had any thoughts on this route?

I know little to nothing about all this so will be getting advice from an accountant before jumping in but thought I may as well see if anyone had any thoughts or experience with them on here first?

Any help/advice would be much appreciated.

Hi Scotty, What decision did you make in the end?

Thanks in advance!

[baronne]

If you are married to a non-earner and neither of you have any income from outside of the company, you could pay yourself all of the post-tax profits in tax-free dividends so no further tax would apply.

This conservatively assumes that you can't justify a salary to your spouse, which would otherwise have increased your take home by a further £1,413 to £83,907 or 86.5% of your profits.

Obviously, not everyone has the luxury of a non-earning spouse. In that case, the position is not quite so compelling but your take home, depending upon cashflow needs would range between £73,353 (75.6%) and £82,494 (85%).



PUMA

Can anyone elaborate on this non-earning spouse thing? I'm in that position and would like to know more about it and what sort of options I should consider?

cheers
Baronne

[northernladuk]

Can anyone elaborate on this non-earning spouse thing? I'm in that position and would like to know more about it and what sort of options I should consider?

cheers
Baronne

This is described in detail in some the guides to the right. Read the S660 one as well.

Also do a search in the forums for wife shareholder or some combination like that. The best method of searching is explained here Welcome / FAQs

Also ask your accountant about it.

[THEPUMA]

Can anyone elaborate on this non-earning spouse thing? I'm in that position and would like to know more about it and what sort of options I should consider?

cheers
Baronne

Hi Baronne

If you would like to call me on<mod snip>, I would be happy to go through it with you.

Regards

Joel

[baronne]

Hi Baronne

If you would like to call me on <mod snip>, I would be happy to go through it with you.

Regards

Joel

Thanks Joel, I'll give you a buzz. cheers
Baronne

[Old Greg]

Thanks Joel, I'll give you a buzz. cheers
Baronne

If he starts talking about using company funds to off set the mortgage, do tell us before you go for it.