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Some of these might work - others might be the road to financial ruin. The problem is that no-one knew. The recent collapse of CFP/Dignatio, and the wide-reaching implications of using EBTs and umbrella solutions, has brought the subject into sharp focus.
Shout99.com is a news and information resource for contractors and will be providing in-depth information about these schemes, taking on board our own research, our wide range of expert contributors and your experience and views.
In the coming weeks we will be highlighting issues relating to these schemes - and have started this week with a range of information about EBTs for contractors.
******Ask An Expert research********
In the light of the issues raised by the CFP/Dignatio case and the many queries that Shout99.com has received about these schemes in general, we have decided to look into any schemes that are brought to our attention.
Shout99.com's IR35 expert, chartered accountant Kevin Miller, has drawn up a questionnaire that he will be sending to all such schemes seeking general background information and answers to a series of key questions that any contractor should have the answer to before they consider joining such a scheme. The first two questionnaires have already gone out.
Shout99.com has created a new area of its website dedicated to reviewing these schemes and allowing contractors to share information. For more information about it, see Shout99's Ask an Expert section here.
******WJB Chiltern examines an Isle of Man option************
Leading independent tax consultancy firm WJB Chiltern Plc. has offered its expert analysis of a scheme currently being marketed as an IR35 avoidance mechanism, which uses an Isle of Man employee benefit trust arrangement.
WJB Chiltern has posted a conference paper on the scheme which summarises the pitfalls and problems which might lie ahead for contractors. This analysis examines what the arrangement it is attempting to achieve, highlights the ways in which it may fail to meet these objectives and gives an assessment of the potential impact on a company of involvement with this structure.
The experts from WJB Chiltern are on hand to answer specific points in a discussion thread.
To read their conference paper click here.
*******Dignatio/CFP - latest*****************
Shout99.com's Kevin Miller and BDO expert, Roger Sparkes, attended this week's Dignatio/CFP creditors meeting. At the meeting, the Inland Revenue served notice to the liquidator of the company that it is considering whether it can claim for at least £3 million of PAYE and NIC that would have been payable had the employees not had the benefit of such devices as loans in devaluating currencies and loans from the EBT.
Kevin Miller's report of the meeting is here.
Shout99.com will be closely following the Dignatio case and has created a password-protected online facility for its creditors to discuss the issue with BDO's expert.
**********Composite companies***************
In the light of recent developments we have re-published an article which first appeared on the forerunner to the Shout99.com site, engineerjob.com, in April 1999, where lawyer Simon Hewes examines composite companies.
Access here.
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Shout99 for Freelancers - alldayPA
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Shout99.com is offering freelancers the chance to have their own secretary, receptionist and office assistant for the price of a phone call. As well as creating the right corporate image for your company, it can be used as an indicator that you are in business on your own account.
The Shout99.com alldayPA service is ideally suited to freelancers who are often on the move or based at client's sites, and need someone to provide the 'front office' support for their businesses. For registration and enquiries telephone: 0845 053 7618
More information here
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You are invited to circulate this newsletter to any other freelancers.
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Regards,
Susie Hughes
www.shout99.com - News matters for freelancers
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The Editor
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