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10-08-2010, 21:42 #11I wear dark glasses so the coppers cant see my brain - Ian Brady, Child Murderer
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11-08-2010, 10:51 #12
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08-12-2011, 22:39 #13Member
- Join Date
- Aug 2010
- Posts
- 86
Anyone worked for Aegis in Iraq? Does anyone know if being a 'consultant' you are employed by aegis or self-employed?
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09-12-2011, 17:48 #14Senior Member
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- Aug 2005
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- 1,499
Depends on your role. As with most PSCs, many companies will offer you a contract with a subsidiary comapny, often registered offshore. The contract, which will probably be signed in London offices, is with a company with a very similar name outside of UK. This enables tax free wages and no NI contributions. It also means you (employee) and company are bound by the employment and legal system of the country in which the company is registered.
For instance - you sign for ABCD PSC in London. But the contract is drawn up by a firm of solicitors in, lets say, Guernsey. All entirely legal and allows you (employee) to take advantage of tax and NI breaks. But, a week after you start work, the company decides you are not quite right for them. You are out of a job, that day, no severance pay and a flight home.
You feel unfairly treated, speak to a lawyer and discover that in order to sue anyone you have to sue the Guernsey registered firm. The law in that country does not provide for legal aid and you MUST be represented by a Guernsey recognised solicitor. They cost a bomb. Furthermore, many aspects of Guernsey law only apply IN GUERNSEY - so being laid off in iraq is not really in their jurisdiction. You have no realistic chance of getting a result, so walk away. Your mate is hired the same day, for less than you were on.
As I said, the up side is tax free wages and no NI contribution. Down side reduced protection. All entirely legal and above board. Think ship owners registering ships in Panama not London - less taxes, lower legislative standards, more profit.
You pays your money. If you work for Aegis in London, you will likely be an Aegis Ltd employee. Abroad, you almost certainly won't.
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09-12-2011, 20:07 #15Member
- Join Date
- Aug 2010
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- 86
Thanks for the detailed response.
Am heading out just now but will have a PM inbound at some point over the weekend!
Cheers
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09-12-2011, 21:04 #16
A very good summary of how PSCs operate. It's worth adding that the taxation of individuals who have traditionally worked overseas and popped back to blighty when not on rotation may be about to change:
http://www.international-adviser.com/tax---technical/proposed-uk-residency-test-explainedSocialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.
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09-12-2011, 22:12 #17
Typical storm in a tea cup thread.
So a business that turns over a few mill is seeking tax advantages? Clearly there is a mix up here that PSCs are thought to be bound by the military covenant? What on earth makes you think that? There was a time when any old Smudge and Tom would set up their firm and land a few contracts. They weren't there to look after their old muckers, now were they?
Besides, it's not exactly new news. Hart was registered in Cyprus almost before the war in Iraq was over and Armor employed folks through Jersey to protect their arses from any come back. Where they fell down was that they expected an unquestioning obedience similar to the army whilst refusing to offer the benefits. I remember a few shocked faces in negotiations but then again, they are companies, not HM Forces.The term bugle originates from the French word bugleret, which was derived from the Latin buculus, meaning young bull.
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29-09-2010, 01:13
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Taking Liberty
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