Looking for a tax strategy that will help you pay less tax?
Contractor solutions are “two a penny” if you search the internet. Have you noticed the common claims?
- “90% return” or "90%+ guaranteed"
- “apply today and start receiving your money”
- “HMRC compliant or 100% compliant”
- “The sign up process requiring that you only need to have a pulse to qualify”.
Have you ever stopped to ask if what you are signing up to is really going to “de-risk” your situation? Even your own Limited Company structure is more at risk now as HMRC sharpen their teeth with the IR35 legislation.
Here are some questions that you really need to start thinking about if you are considering entering into a contractor solution offering. More importantly you need to bear in mind that any tax planning that produces a result that Parliament did not intend, carries a risk.
- Who are the people offering the solution? Are they Financial Advisers, or, Accountancy Practices who can provide solutions and alternatives?
- Does the provider adopt a hard sales model? This may indicate the wrong sort of motive behind the provider’s positioning.
- Would you be required to provide details of your qualifications and experience? Under what circumstances, could your application be rejected?
- If most of your income from the structure came from expenses, how do you know if HMRC will have approved these and what are your risks?
- Has the provider detailed both the commercial and tax risks involved with their solution? Have they clearly articulated where and with whom the tax risk lies?
- Has the provider tried to reassure you with a statement like “Don’t worry about the loan, you will never be asked to repay it”?
- Does the provider have a defence fund to cover all HMRC challenges to the structure through the Courts? If so, how much is in the fund and who holds the monies?
- Which Tax Counsel has provided an opinion on the structure and was this on the whole structure or just a part of it?
- Does the provider offer education webinars that you can attend?
- How often is the structure modified to be kept it up to date?
Unless you receive satisfactory answers to all of these questions and feel comfortable with them, be very wary of proceeding.
Paying higher rate tax is entirely optional
If you would like full and transparent answers to all of the questions above, and more, then we may just have a solution for you that will dovetail with your requirements and save you an awful lot of money.
Ours is an “employer solution”, giving you choice and control over the income you generate whilst keeping more of what you earn
Our solution has been designed by Chartered Accountants and is only available through Accountancy Practices who are members of a network called Peak Performance Tax Ltd.
Only members who have been through a detailed training programme are authorised to provide the necessary advice and education.
Thomas Cox & Co is an authorised Practice
To move to the next stage, please provide your details below; Peter or one of our team members will get straight back to you.