Pay Angels- Umbrella Company- any used them?

[Corpulent Tosser]

I have had contact from a company called Pay Angels, who promise to save me money.

Basis of the deal is I am a contractor and I would be employed by Pay Angels, they would invoice my agent and pay me a set amount per month on which I would pay tax and NI, the remainder less their fees, would be paid into a trust from which I would get loans which would never be paid back.

I have heard of this kind of thing before and thought this loophole had been closed. Rangers Football Club got into bother with the tax man over it but so far the tax man is losing, or so I believe.

The chap I spoke to assures me it is legal and 'compliant' though what it complies with I don't know.

So anyone any experience of this or similar company, is it legal ?

[Dr Jekyll]

Might be legal, apart from the 'would never be paid back' bit. But that won't stop HMRC going off on one, avoid.

[Corpulent Tosser]

My first thought are, if it sounds too good to be true it probably is, but I am curious to know if anyone has tried it and how they got/are getting on with it.

I am fairly sure if I ask my accountant there will be a sharp intake of breath and a shake of the head.

[Murph7355]

I think crankedup rates them highly and believes them to be a morally "straight" player. You might want to drop him a PM as I'm sure he wouldn't mind his afternoon nap interrupted to be able to help a fellow PHer.

[iphonedyou]

Murph7355 said:

I think crankedup rates them highly and believes them to be a morally "straight" player. You might want to drop him a PM as I'm sure he wouldn't mind his afternoon nap interrupted to be able to help a fellow PHer.

[Corpulent Tosser]

Murph7355 said:

I think crankedup rates them highly and believes them to be a morally "straight" player. You might want to drop him a PM as I'm sure he wouldn't mind his afternoon nap interrupted to be able to help a fellow PHer.

[Troubleatmill]

You are going to get bum raped by HMRC for a long long time if you are caught.

A few threads on this already.

You take out a loan against the trust - that you never pay back.

[smegmore]

Corpulent Tosser said:

I have had contact from a company called Pay Angels, who promise to save me money.

Basis of the deal is I am a contractor and I would be employed by Pay Angels, they would invoice my agent and pay me a set amount per month on which I would pay tax and NI, the remainder less their fees, would be paid into a trust from which I would get loans which would never be paid back.

I have heard of this kind of thing before and thought this loophole had been closed. Rangers Football Club got into bother with the tax man over it but so far the tax man is losing, or so I believe.

The chap I spoke to assures me it is legal and 'compliant' though what it complies with I don't know.

So anyone any experience of this or similar company, is it legal ?

When they're holding thousands of your hard earned and then go t*ts-up where do you stand?

In the queue for the foodbank, that's where.

Forget it, too good to be true.

[Smiler.]

I think this is known as a Tax Poophole

[Troubleatmill]

The Pay Angels website is so confident that:

1/ There is no email or address/ registered office

2/ Stock photograph for "Paul - the project manager"

[Mrr T]

Corpulent Tosser said:

I have had contact from a company called Pay Angels, who promise to save me money.

Basis of the deal is I am a contractor and I would be employed by Pay Angels, they would invoice my agent and pay me a set amount per month on which I would pay tax and NI, the remainder less their fees, would be paid into a trust from which I would get loans which would never be paid back.

I have heard of this kind of thing before and thought this loophole had been closed. Rangers Football Club got into bother with the tax man over it but so far the tax man is losing, or so I believe.

The chap I spoke to assures me it is legal and 'compliant' though what it complies with I don't know.

So anyone any experience of this or similar company, is it legal ?

You will find its legal in the sense that its registered as a tax avoidance scheme. However, that does not mean HMRC have accepted the scheme.

http://www.sjdaccountancy.com/about/ebt_employee_b...

[Du1point8]

Sounds much like the Montpelier Scheme, I would not like to be amongst one of their customers now.

Not sure how its panning out or if they all got away with it.

[crankedup]

ICEBERG DEAD AHEAD!!!!!!!!!

Umbrella Companies, one day everybody will work under their auspices, they are spreading and growing faster than the Bubonic Plague. You have been warned.

[untakenname]

The BBC keep on plugging away at how mean it is that tax free contractor loans made by umbrella companies are being called in by HRMC on Radio 4 and now they have this emotive article

https://www.bbc.co.uk/news/business-49284171

I'm guessing that the BBC used these schemes to pay their employees and so have a vested interest in getting this repealed.

I used an umbrella scheme in 2013 (was forced to as wouldn't have got the job otherwise) and thought it was too good to be true but haven't heard anything yet from HRMC, I wasn't earning too much back then and it was only for a few months so if I do have to pay the full rate of tax I can absorb it.



I thought there was a longer thread on contractor loans being called in already running but couldn't find it via google/pistonheads search but this one came up, bumped it instead of creating a new one as it looks like this thread was quite prophetic.

Edited by untakenname on Wednesday 14th August 10:10

[Mazinbrum]

HMRC chasing people who didn't pay tax by being paid through offshore companies, shocking... In other news on the BBC tourists being conned by the three cup trick lmao....