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From an umbrella company that is claiming not to be a scheme can I add the following phrases to run away from
Matched Permanent Pay
and All payments are made through PAYE only does not mean that the entire payment has had tax paid on it.
Oh and if the website doesn't have a calculator on it I'm getting to the point where I think its dodgy as f**k.
MPP or Match Pay Perm is what umbrella companies now have to operate, as they revoked the Swedish Derogation Model. It is the method that means that an umbrella company has to check that the contractor is receiving an equivalent pay under the AWR as a permanent employee onsite with the client - IF there is an equivalent on site.
HTHs
MPP or Match Pay Perm is what umbrella companies now have to operate, as they revoked the Swedish Derogation Model. It is the method that means that an umbrella company has to check that the contractor is receiving an equivalent pay under the AWR as a permanent employee onsite with the client - IF there is an equivalent on site.
HTHs
So you can look at https://simplypaid .co.uk and identify the warning signs that tell people to avoid an umbrella company that say pays the living wage, pockets £100+ and provides the rest as a "loan"..
So you can look at https://simplypaid .co.uk and identify the warning signs that tell people to avoid an umbrella company that say pays the living wage, pockets £100+ and provides the rest as a "loan"..
Was just explaining that MPP is not a warning sign - as for that company, no comment other than take a look at the directors -
Can we add no website to the list of things to watch out for.
Done, but I'm amazed at this one...
"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...
I have bumped into this Umbrella which is saying that I just have to declare to HMRC the redemption of the shares they are paying to me and pay the taxes accordingly.
They say Capital Gain Tax on shares are much lower then salary Income Tax and that is what it makes the trick.
Sounds reasonable, it is how the Growth scheme work and it is largely used in this way.
They say they can issue certificates for the shares as prove of a real Growth Share scheme.
They also suggested to contact an accountant for the end of the year self assessment and Capital Gain Tax payment.
They offered an escrow account where to save the funds for the CGT payment at the end of the year, which is a bit suspicious and even thought it is safe account hold by a third party I don't think it is an acceptable solution.
But a part from this, it sounds pretty transparent and clear!
I am waiting for a mock contract to review just out of curiosity.
I have bumped into this Umbrella which is saying that I just have to declare to HMRC the redemption of the shares they are paying to me and pay the taxes accordingly.
They say Capital Gain Tax on shares are much lower then salary Income Tax and that is what it makes the trick.
Sounds reasonable, it is how the Growth scheme work and it is largely used in this way.
They say they can issue certificates for the shares as prove of a real Growth Share scheme.
They also suggested to contact an accountant for the end of the year self assessment and Capital Gain Tax payment.
They offered an escrow account where to save the funds for the CGT payment at the end of the year, which is a bit suspicious and even thought it is safe account hold by a third party I don't think it is an acceptable solution.
But a part from this, it sounds pretty transparent and clear!
I am waiting for a mock contract to review just out of curiosity.
What are your thoughts about this?
Best Regards,
Marco
My thoughts?
Did you read the rest of the post? Let me tell you how this will go, shall I?
You receive the contract and won't read all 25 pages of it, which is a shame because somewhere around page 19 to 25 there'll be something about it being a loan.
You'll sign it with their strong (verbal) assurance that it's all 'above board'
6 months to one year later you'll get a tinkle email from HMRC asking if you've got anything you want to talk about.
Even stronger (verbal - nothing written) assurance from the 'Umbrella' that you are in the clear
12-24 months later HMRC come banging on your door demanding their due tax
You turn to the sharks who assured you, but 2 days previously they closed down the company and did a bunk - no help there!
Now, it can go 2 ways here (or both if you're really unlucky).
HMRC brings in the Liquidator or get their money back, or/and
The said sharks have sold the book to a debt collector and they will chase you for the debt.
So, my thought is that anyone going for this is either naive or greedy.
"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...
Did you read the rest of the post? Let me tell you how this will go, shall I?
You receive the contract and won't read all 25 pages of it, which is a shame because somewhere around page 19 to 25 there'll be something about it being a loan.
You'll sign it with their strong (verbal) assurance that it's all 'above board'
6 months to one year later you'll get a tinkle email from HMRC asking if you've got anything you want to talk about.
Even stronger (verbal - nothing written) assurance from the 'Umbrella' that you are in the clear
12-24 months later HMRC come banging on your door demanding their due tax
You turn to the sharks who assured you, but 2 days previously they closed down the company and did a bunk - no help there!
Now, it can go 2 ways here (or both if you're really unlucky).
HMRC brings in the Liquidator or get their money back, or/and
The said sharks have sold the book to a debt collector and they will chase you for the debt.
So, my thought is that anyone going for this is either naive or greedy.
Cojak, I suspect this isn't a loan scheme (other slightly less stupid but equally insane solutions are available) however it doesn't matter to any real extent.
The important bit to remember is that HMRC regard the income you receive for work you do as income and expects to see the appropriate level of tax paid on that income (which means Employers NI, Employee NI and Income Tax).
The only legal and tax efficient way to avoid paying tax immediately on earnt (via working) money is to put it in a pension which is why I continually emphasis to look for compliant umbrellas (preferably one that uses a continual real time compliance solution) which offers Salary Sacrifice.
And regardless of the "umbrella" MarcoM is using if it isn't paying the appropriate amount of tax HMRC will eventually be asking for the difference from someone. And that someone is likely to be MarcoM as the umbrella will have disappeared or been closed down.
Cojak, I suspect this isn't a loan scheme (other slightly less stupid but equally insane solutions are available) however it doesn't matter to any real extent.
The important bit to remember is that HMRC regard the income you receive for work you do as income and expects to see the appropriate level of tax paid on that income (which means Employers NI, Employee NI and Income Tax).
The only way to avoid paying tax immediately on earnt (via working) money is to put it in a pension which is why I continually emphasis to look for compliant umbrellas (preferably one that uses a continual real time compliance solution) which offers Salary Sacrifice.
And regardless of the "umbrella" MarcoM is using if it isn't paying the appropriate amount of tax HMRC will eventually be asking for the difference from someone. And that someone is likely to be MarcoM as the umbrella will have disappeared or been closed down.
So my final thought remains the same.
"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank...
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