Need Advice on Choosing Umbrella Need Advice on Choosing Umbrella - Page 3
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  1. #21

    Nervous Newbie


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    Quote Originally Posted by mudskipper View Post
    Very happy to be corrected by someone in the know, but it looks as if yourCo is a shareholder of the "network" so gets dividends, which it can then pay to you.
    That is correct, they are issuing a share certificate to your company so your company is potentially a shareholder of the "network".

  2. #22

    TykeLike

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    Quote Originally Posted by Newbie09 View Post
    Has anybody looked at PayWorx umbrella? They are advertising Hybrid umbrella...Basically they pay 14-18 as your salary with tax/NI paid. The remaining they assign to a different company called ContractorsBuddy which issues dividends to your Ltd company. You don't pay Corporation tax on dividends but personal tax when you draw from your Ltd company.

    Do you think HMRC will soon catchup and call this also a tax evasion?
    Have you asked them how the money gets from ContratorsBuddy to your Ltd? As if it's dividends YourCo needs to be a shareholder but there is nothing on companies house for that name

    Search Companies House

    Search Companies House

    Quick googlefu and they are set up by a property developer/investor by the looks of it
    Last edited by SimonMac; 31st October 2019 at 11:32.
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

  3. #23

    Nervous Newbie


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    Quote Originally Posted by SimonMac View Post
    Have you asked them how the money gets from ContratorsBuddy to your Ltd? As if it's dividends YourCo needs to be a shareholder but there is nothing on companies house for that name

    Search Companies House

    Search Companies House

    Quick googlefu and they are set up by a property developer/investor by the looks of it
    CONTRACTOR BUDDY LIMITED - Overview (free company information from Companies House)

  4. #24

    TykeLike

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    Smart arse!

    Nature of business (SIC)

    94990 - Activities of other membership organisations not elsewhere classified
    Hmmmmm
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

  5. #25

    Some things in Moderation

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    Quote Originally Posted by Newbie09 View Post
    Has anybody looked at PayWorx umbrella? They are advertising Hybrid umbrella...Basically they pay 14-18 as your salary with tax/NI paid. The remaining they assign to a different company called ContractorsBuddy which issues dividends to your Ltd company. You don't pay Corporation tax on dividends but personal tax when you draw from your Ltd company.

    Do you think HMRC will soon catchup and call this also a tax evasion?
    Let's put it this way - I WILL be asking Admin to set up an 'HMRC IR35 Enquiries' sub-forum next year, because I know what contractors are like.

  6. #26

    Fingers like lightning


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    It's just another loophole and a scam arrangement - in reality you have no links to the company paying you dividends so HMRC are never going to like it - just saying

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