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Anyone recommended Propser2

If its too good to be true it must be.

Didn't find your answer?

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?

Replies (17)

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By ireallyshouldknowthisbut
02nd Mar 2020 16:15

Eh?
So the company takes 20% of your cash, and your get a BIK for the 80%?

How f***ing stupid do you have to fall for this scam?

Presumably it 'works' on the basis that your accountant or business books it as a cost and doesn't know what its for. Or Fraud. As its commonly know.

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By lesley.barnes
02nd Mar 2020 16:27

Never heard of them but a quick google didn't bring up any uk reviews. I can't see how it would work - as you say if the Directors/owners are using these cards loaded with Company money they must be liable for tax. The fact there is a disclaimer about tax liabilities suggests this scheme isn't going to work. Does this company actually do any marketing or are they just pushing money around and taking 20%.

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Replying to lesley.barnes:
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By Fidodido
02nd Mar 2020 16:41

You seem to get some marketing out of it, but it would seem to me the main idea is you pay your fee, then get this tax free no implications amount on your card. Some big firms linked with it (industry and practice), so my clients seem to want to do it!!

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Replying to Fidodido:
By ireallyshouldknowthisbut
02nd Mar 2020 16:53

Well either you, or your clients, must have been born yesterday.

If they want to commit tax fraud, why not just write out a fictitious invoice and get your business to pay that? This is all this amounts to.

But presumably you are going to opinion shop until someone comes on here telling you its perfect OK?

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Replying to Fidodido:
paddle steamer
By DJKL
02nd Mar 2020 17:07

How does company deal with W & E re the total payment?

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By Ranse
02nd Mar 2020 16:58

So the company's money is spent on marketing but the reward ( cash back) goes back to the director's/individual's card or does it goes on a company's card.

if a - its a BIK
if B - ( makes no sense ) they will have to justify spending taxwise

this is very funny

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Replying to Ranse:
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By RichG
05th Jun 2021 16:47

The card is for the directors and the reward is from the company’s spend on marketing. Like the old shell points we used to collect when we bought company fuel. I can’t understand the percentages; 80% cash-back, meaning 20% is actually spent on marketing. The same at Shell would be equivalent to £60 company fuel and £240 cash-back in the shop!!?

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By paul.benny
03rd Mar 2020 10:53

If it is tax evasion - and it does rather look like it from the brief description here - an accountant endorsing it might be accused of criminal facilitation of tax evasion.

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By SWAccountant
03rd Mar 2020 11:03

I think I've heard of this before. Like most here, I don't like it.

If it is what I think it is, they claim the pre-paid card works a little bit like air-miles, which isn't a BIK. Of course, it doesn't work like that at all but that is their spin.

If it looks, sounds and tastes like a duck...

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Replying to SWAccountant:
paddle steamer
By DJKL
03rd Mar 2020 11:37

SWAccountant wrote:

I think I've heard of this before. Like most here, I don't like it.

If it is what I think it is, they claim the pre-paid card works a little bit like air-miles, which isn't a BIK. Of course, it doesn't work like that at all but that is their spin.

If it looks, sounds and tastes like a duck...

And if it is a goose it tends to later get cooked.

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By bernard michael
03rd Mar 2020 12:22

The company running this is owned by an Isle of Man parent and the card is licensed by Mastercard International. authorised and regulated in Gibraltar

Nuff said !!

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By Louisemunro320
03rd Mar 2020 12:44

Its a scam. I lost a client about 3 years ago relating to this matter. I asked for copies of the purchase invoices for the so called 'marketing' - there was no marketing and there certainly wasnt any paperwork issued.
Client deliberately took it on to get monies out of the company (rather than dividends)
It was promoted by an dodgy accountant based in the west midlands. Then about 12 months later I had another client doing the same scam so he went as well

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Replying to Louisemunro320:
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By howdoesthiswork
06th Jan 2022 08:05

Surely this is tax evasion.

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By RichG
02nd Jun 2021 19:05

This business club has been recommended to us as a solution for efficiencies. Has anyone looked in to this further? Clients get a credit card for cash back from their rewards program for business in the club.

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Replying to RichG:
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By Hugo Fair
02nd Jun 2021 19:25

If you're intent on hijacking an old thread (presumably with the objective of promoting this 'scheme'), then you'd do well to read the earlier replies on the original thread.

In short, the scheme/club is highly dubious, almost certainly fraudulent and will lead to higher (not lower) tax bills for anyone stupid enough to sign up for it.

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Replying to Hugo Fair:
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By RichG
05th Jun 2021 16:37

Thank, I‘ve read the previous comments and original post. You presume incorrectly - the intent here is to ask whether any more is known of this club. The opinions are pretty clear!

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Replying to RichG:
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By Paul Crowley
05th Jun 2021 16:57

The club is doing nothing wrong unless it advises on the tax position, which it will not do in writing
The problem comes with the user treating the transactions incorrectly.

I would guess that no responder has had a client daft enough to join

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