• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Umbrella going into Administration-Liquidation

Collapse
This is a sticky topic.
X
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    #31
    Originally posted by eek View Post
    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

    Comment


      #32
      Originally posted by lucyclarityumbrella View Post
      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"..
      merely at clientco for the entertainment

      Comment


        #33
        Originally posted by eek View Post
        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 -

        Comment


          #34
          Can we add no website to the list of things to watch out for.
          merely at clientco for the entertainment

          Comment


            #35
            Originally posted by eek View Post
            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...

            Comment


              #36
              Originally posted by cojak View Post
              Done, but I'm amazed at this one...
              That comes from "umbrella comparison" referrals
              merely at clientco for the entertainment

              Comment


                #37
                Hello everyone,

                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

                Comment


                  #38
                  Originally posted by MarcoM View Post
                  Hello everyone,

                  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?
                  1. 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.
                  2. You'll sign it with their strong (verbal) assurance that it's all 'above board'
                  3. 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.
                  4. Even stronger (verbal - nothing written) assurance from the 'Umbrella' that you are in the clear
                  5. 12-24 months later HMRC come banging on your door demanding their due tax
                  6. 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).
                  1. HMRC brings in the Liquidator or get their money back, or/and
                  2. 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...

                  Comment


                    #39
                    Originally posted by cojak View Post
                    My thoughts?

                    Did you read the rest of the post? Let me tell you how this will go, shall I?
                    1. 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.
                    2. You'll sign it with their strong (verbal) assurance that it's all 'above board'
                    3. 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.
                    4. Even stronger (verbal - nothing written) assurance from the 'Umbrella' that you are in the clear
                    5. 12-24 months later HMRC come banging on your door demanding their due tax
                    6. 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).
                    1. HMRC brings in the Liquidator or get their money back, or/and
                    2. 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.
                    Last edited by eek; 22 October 2020, 08:07.
                    merely at clientco for the entertainment

                    Comment


                      #40
                      Originally posted by eek View Post
                      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...

                      Comment

                      Working...
                      X