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Our Clients Who is Opus Management


									Who is Opus Management?
Opus is a progressive and forward looking tax planning consultancy. We provide tailored tax solutions
to individuals and organisations. Our tax planning solutions are scrutinised and verified by leading Tax
Counsel and are delivered by our highly professional team. We study each annual Finance Act in finest
detail in order to provide the most up to date tax planning available within current legislation.

Our Clients
Professional Sports, Arts & Media
Tax planning for Sports & Media has always required the ultimate in
diligence with such a great spotlight on this industry. Opus Management
offer a range of bespoke and highly robust tax planning structures to
manage some of the truly commercial aspects such as sponsorship and
image rights.

Financial Market Traders and Hedge Fund Managers
Recent years have seen what can only be described as punitive taxation
against the UK's captains of industry. We aim to mitigate that liability as
much as possible by utilising the latest legislation to give back that
competitive advantage.

Freelance Contractors
The UK's Contracting fraternity have long been interested in Tax
Planning and have become very savvy. The flexible nature of their work
allows them many tax advantages over their permanent counterparts.
They carry the risks associated with contract work and Opus Management
assist them in maximising the contract work that they secure.

                                                                                        Opus Management Ltd
                                                                                        3rd Floor
                                                                                        The Old Courthouse
                                                                                        Athol Street
                                                                                        Isle of Man
                                                                                        IM1 1LD
                                                                                        63 Grosvenor Street
                                                                                        Mayfair London
                                                                                        W1K 3JG               Tax Planning for Financial Market Traders
                                                                                                                     and Hedge Fund Managers
    A word on FMST (Focus Managed Service Trust)                                                                                                                               FMST is not an EBT
Traditionally, banks and other financial institutions have     Removed from the shackles of employment, the                            Specifics
secured the services of senior and specialist individuals by   structure allows the individual to determine, in an                     FMST has absolutely no connection or similarities with      FMST is a UK settled and based Trust, administered in
way of employment. The FMST structure offers distinct          entirely commercial manner, when he or she will                         EBTs whatsoever.                                            Northwich, Cheshire.
advantages, both to the professional individual and to the     become entitled to income; and hence when he or she
                                                                                                                                       EBTs or employee benefit trusts are trusts established by   FMST is VAT registered in the UK and does all of its
financial institution itself.                                  will have to account for and pay tax on that income.
                                                                                                                                       a company or other employer for the benefit of its          banking with Barclays Bank PLC in the UK.
For the individual, the arrangement ensures that he or         The individual may in practice defer entitlement to
                                                                                                                                       employees. They are used to provide a variety of            The Trust can invoice for professional services, by
she is not employed, nor deemed to be employed for             income for a considerable period – possibly until he or
                                                                                                                                       benefits but in recent years have become notorious          virtue of the incorporated STEP standard administrative
the purposes of income tax legislation in the UK. This         she has ceased to be resident in the UK, or until he or
                                                                                                                                       for providing tax-efficient loans to employees. The         provisions which include an express power to trade.
is significant in light of the “disguised remuneration”        she has passed away.
                                                                                                                                       Treasury considered this to be aggressive tax avoidance,
rules introduced in the Finance Act 2011 with effect           In the meantime, the individual can draw on a credit                    and following a review introduced sweeping new rules in     FMST is a truly commercial arrangement for the
from December 2010. These rules have effectively put           facility, secured by a charge over the rights to income                 December 2010 which have effectively closed the use of      consummate professional, adding greater value to
an end to the tax-efficient use of employee benefit            that has not yet become payable. Senior tax Counsel                     EBTs as tax planning vehicles.                              your work.
trusts and other employment-based arrangements,                has advised that the use of this credit facility does not                                                                           It should be appreciated that the trustees are bound to
                                                                                                                                       The FMST is not an EBT quite simply because the
which formerly were used to provide high-earning               trigger any tax liability – in contrast to the current                                                                              follow the professional standards and ethics of their
                                                                                                                                       contractors whose services are provided via the trust
individuals with non-taxable “soft loans” instead of           treatment of loans made from employee benefits trusts                                                                               respective professional bodies, and would not be
                                                                                                                                       remain self-employed; and so the December 2010 rules
taxable bonuses.                                               and other employment-based structures.                                                                                              permitted by those professional bodies to enter into
                                                                                                                                       do not affect it. We have advice from a senior Queen's
                                                                                                                                       Counsel confirming that HMRC has no mechanism under         any unlawful activity.
                                                                                                                                       current legislation to treat those providing services       At no point, while engaged by the trustees to provide

                                         A Word on Loans                                                                               through the FMST as employees.                              services, do traders become beneficiaries of the Trust.

When funds are collected by the FMST, they are invested via an independent investment company into loans. A
separate loan company is able to make a tax free loan using your deferred earnings as collateral. In that way your
loan is always balanced by collateral held (see diagram below). Should the loan be recalled it can be settled in a
                                                                                                                                                                     Breakdown Comparisons
variety of ways depending on your circumstances at the time.
The diagram below details an example operation of a loan facility, should it be required by the contractor and also                         £1,000,000
                                                                                                                                                                         Net Returns on £1m Earning
providing that the lender agrees terms of the requested loan.

                                                                                           BALANCE                                           £800,000

END CLIENT                                         FMST
                                            (Trader’s fees                               +£100,000

                                                                                                                     Always balanced
 £100,000                               retained by trustees)


                                                LOAN CO.                                                                                                                         £500,444           £499,547            £498,619
   £100,000                                                                                                                                  £200,000

                                      (Loan secured by charge                            -£100,000
    TRADER                             over unpaid earnings)                                                                                       £0
                                                                                                                                                             Opus Management     Limited Company     Partner of LLP         PAYE
                                                                                                                                                                                  Dividend Model

The difference between the FMST and other trust based remuneration arrangements is that with the FMST you are
contractually entitled to receive the fees agreed between you and the trustees in full, subject to you fulfilling all of
your contractual obligations. With other trust based schemes you are merely a beneficiary of a discretionary trust,
                                                                                                                                                                      Opus               Limited Company               Partner               PAYE
with no automatic right to receive full payment for the work you do. In other words, the FMST gives you certainty
and security.                                                                                                                                                      Management             Dividend Model                of LLP

Is my money safe if FMST came to an end?
                                                                                                                                            Gross Earning           £1,000,000                £1,000,000              £1,000,000         £1,000,000
If the trust ceased trading and was wound up, you would obviously cease to be contracted
to provide services through the trust. Before winding up the trust, the trustees would have to distribute all the                           Deductions               £151,465                  £499,556               £500,453             £501,381
trust assets, including the benefit of loans made to former contractors. The trustees would still have their
contractual obligation to pay your deferred earnings, subject to you fulfilling all your obligations. In practice, your                     Net Return               £848,535                  £500,444               £499,547            £498,619
right to deferred earnings would cancel your debt to the loan company
                                                                                                                                            Saving                                             £348,091               £348,988             £349,916
NOTE: The above diagram shows very basic figures. Please remember that FMST also deduct fees for their services.

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