I have had a number of clients now come to me be about using Prosper2 (Squared).
I have had a read through the info they send out and alledgedly there are some big businesses using it and some accountants recommending it.
I persoanlly and a tax specialist we use do not agree and can not see how the credit back on to a prepaid card can not be classed as income for the director. .
Basically the company pays a marketing/subscription fee to Prosper 2, then 80% is applied to a prepaid credit card that can be used for anything except drawn in cash, used for gambling or fuel... so you pay a £6k fee a month and get tax corp tax relif on this, then a lovely £4.8k to spend as you wish on your card.
Of course they have the disclaimer saying should any tax be liable they are not responsible.
Any one think it works and why it does?