Any accounts on here I need advice

[akyakapotter]

Ok so the company I am now working for are planning on changing the way they pay every one including self employed people (me) they are planning on us all signing up to a company in the Isle of Man and that company paying us instead of the company I'm doing the work for and us paying said compan 5% of every £100 we earn apparently we won't have to pay any tax as we are being paid by a company out side the uk. How do I not pay any tax as surely ill still have to do my self assement at the end of the year and pay tax it's really confusing me and sounds really dodgy to me. Current company have told us if we do not do this we can no longer work for them any help would be brilliant thanks nick.

[Hou]

Hmmm that does sound very dodgy dude. Either way, you are earning the money inside the UK, therefore should be liable for UK tax and NI. Seems they are trying to use some form of tax avoidance loophole, but I have been out of the tax side of things for a bit.

Do you have an accountant for your tax at the moment? If so I would ask them, as from having a quick look, the UKGov are trying to crack down on these types of tax avoidance schemes. I would also look into the legality of them forcing you to go into this scheme, maybe go see citizens advice

[akyakapotter]

I don't have an accountant mate i do it all myself mate yeah I think the company are trying to avoid paying tax hmmm bloody security company's all dodgy bastards lol

[shorty]

Go and have a quick chat with an accountant mate. Im a ltd company and when i first started up (was good few years ago mind) you get a bit of free time to just chat to them about stuff so long as you seem interested in getting them to do your returns for you (obviously you dont want them too) but as long as you seem interested you will get all your questions answered for no charge.

[akyakapotter]

This is who it's going to be through think ill have a chat with my aunti she HR at a company she works for sure she will no about this kind of stuff

[Hou]

Yeah, as above though, a bit of advice from a tax accountant might help. I will have a think who I know that I can tap up for info

[akyakapotter]

I think I've got it now I will pay £5 of every £100 earned which in turn I can claim back on my self assement as an expense bringing my tax bill down combined with other expenses will be next to no tax at the end if the year I think that's how this is going to work.

Edited September 8, 2013 by akyakapotter