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Wealth manager caught by contract/flow of income

I have a client who traded through a limited company as a wealth manager who is bribery told to stop

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A potential client of mine has always traded through a limited company as a wealth manager. He is personally appointed by the Wealth Managemt firm and personally registered with the FCA. In his role the following has been sent to him:

‘Where the flow of income does not match the contractual position, there is a potential transfer of income streams’

Clearly true and the upshot is he is considered self employed and may well have been transferring income for some time.

Now the fees that are generated as a result of the delivery of regulated advice consume about 30% of my client’s time. The balance of his time being spent generating the clients to advise and administering the client bank. 

So, to the question. Is it possible for the close Limited Company to invoice the self employed individual for marketing and support services to account for the remaining 2/3rds of his time or is this still shifting income?



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By Glenn Martin
12th Jul 2019 13:29

What do you think?

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Replying to Glennzy:
By KungFuKipper
12th Jul 2019 14:21

I would think it is an artificial and deliberate move to avoid the taxes that the business was already avoiding. At least I would if the interpretation in this instance didn’t specifically relate to fees from the regulated activities, making calving out the non-regulated activities more justifiable. That being said, I am not confident either way, hence the question..

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By paul.benny
12th Jul 2019 13:42

The sub-heading refers to bribery. What's that about?

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Replying to paul.benny:
By KungFuKipper
12th Jul 2019 14:02

That will be my I phone auto correct and fat fingers - sorry.

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