Isle of Man Umbrella Companies
Offshore Umbrella Companies set up in the Isle of Man are normally legal according to UK laws on loans set up by the Thatcher Government.
Within the first month of getting to power the Thatcher Government made moving funds offshore untaxable and loans free of tax too.
Tory Grandees have used that to set up tax avoidance schemes for themselves and others.
Offshore Umbrella Companies
Indeed David Cameron’s father Ian was an early user of the schemes and got others to participate.
Much of David’s inheritance came from money made in those schemes.
The Cameron family spend holiday time at his father-in-law Lord Astor’s house in Scotland which is registered in the Bahamas.
Lord Astor is a regular user of offshore tax avoidance schemes as is the top Tory fundraiser and donor Lord Ashcroft.
Indeed Chancellor Osborne has an offshore family trust.
Now IT Contractors are taking advantage of this.
The way these schemes normally work, the contractor pays his or her money to the offshore umbrella company who loans him or her back the money.
As loans are not taxable there is no tax paid.
Contractors can normally get 84% and upwards returned to them.
The Isle of Man umbrella companies have to make full disclosure to the UK tax authorities about any Tax Avoidance schemes but that is no problem as they are legal anyway.
For a selection of good Umbrella Companies check out Which Umbrella Company