My client is a model and a new contract that she has been offered includes mention of a plan to receive all her earnings free of tax. The plan is called the Bluetax plan and is offered through a company called Baxendale Walker LLP. It is described as a type of remuneration trust.
Their examples in the contract suggests that notional paye and ni is calculated on the performers earnings. This amount is then paid to the plan as a fee. The performer then receives 50% of this fee back from the plan. It has to be paid to a separate bank account but the perfomer is then free to spend this money as they wish. The information states that the performer pays no actual tax or national insurance whatever their earnings.
My client has asked if she should sign up to this?
Can anyone advise me on this scheme? Is it legal? Are there any catches? If my client uses this scheme is she still self employed? Can she claim any expenses? Does she still need an accountant?
Thanks for any advice