2008 Budget News
Offshore Partnerships have been specifically targeted in the 2008 budget and if your current scheme relies on a double taxation agreement then you will NEED to find an alternative provider!
The double taxation agreement was used extensively in many tax planning solutions for IT Contractors. But this legislation is under constant attack by the UK Government - despite the UK having over one hundred Double Taxation Agreements with countries such as Japan, USA, Russia and Australia.
The Employment route seems to be a good alternative for Contractors. Through an Employee Benefit Trust (EBT) the contractor can earn up to 85% of their contract value whilst not having to worry about IR35, managed service company legislation, transfer of debt rules or the 'profit sharing' clamp down.
Becoming an employee allows for an excellent tax-effective method of working that provides great financial rewards and allows for peace of mind. The Contractor will earn a salary and be entitled to an 'interest-free' employment loan.
The benefit loan is a legitimate means of rewarding employees and is the kind of profit-sharing structure City Banks and large companies use to reward their high performers.
If you are a contractor looking to maximise your contract value then please contact us for further information!
Please email - accounts@thetaxadvantage.co.uk for a FREE consultation: