About four years ago when I took VR I was looking around for contract work. A couple of people I spoke to offered the wonderful opportunity of working for an IOM umbrella company so that (a lot) of tax could be avoided.

Seems that the revenue has now gotten round to closing down these schemes and it actively chasing people for tax avoided from the year dot. Sums are running into the tens to hundred of thousands so it seems.

When I was offered the "opportunity" of paying 15% tax in the Isle of Man I turned it down as it sounded TGTBT(tm).

I hope that others have not been suckered in. And I just cant help but not feel sorry for the people involved.

How could people think they would be able to avoid paying tax for ever ?

Oooh. I know a number of people doing the umbrella thang. I didn't realise it was offshore too.

Greed. Both by the contractor and by the accountants 'selling' the scheme. Tax avoidance schemes are always a risk (and calculated opportunity) and it these cases it depends on the contractors acceptance/avoidance of risk and also how the accountant has explained the risk.

A lot of people bury their head in the sand when it comes to tax issues.

To be honest, in some contracting sectors umbrella companies based in the UK are working illegally.

This was a specific scheme. Most , if not all contractors you know will be using umbrellas based in this country.