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If you have just come into some land as part of your inheritance and you have heard someone mention that it might be contaminated, then you are likely wondering what exactly that means. According to the government website in the UK, land that has been exposed to lead and other heavy metals, or tar and oils could be contaminated. If the land has been exposed to gases or radioactive substances, then that exposure could also cause contaminated land.

How Is Land Determined To Be Contaminated?

If the land has been exposed to something that will cause harm to the property itself, to animals, or to humans, then it is considered to be contaminated land. If any water on the land is heavily polluted and that pollution could cause harm to animals or humans, then this too would make the area fall under this type of designation. If any aspect of the property has been exposed to something that will do harm to animals or humans or to the property itself, then they are considered this type of ‘special site’.

How Does Land Become Contaminated?

The most common cause is that some type of business polluted the area in the past. This might be a factory or mining operation, or it could be a refinery or steel mill. Another common cause is an old landfill. These types of businesses will leave behind the remnants of their production processes which fills the land and water with pollutants, that are ultimately harmful to animals and to people. In some cases, it could be something that does harm to any property situated on it, causing it to corrode or to become damaged in some other way.

What Happens Once A Property Has Been Determined To Be A Special Site?

If you have a piece of property that has been designated as a special site, then it will fall under the regulatory rules of either the Environment Agency in England, the Natural Resources Department in Wales, or SEPA in Scotland. If the Environment Agency has decided that a piece of property you have falls under this category, then they would determine what the next step would be.

The council will come to a decision on how the land itself should be dealt with. They will hold the people that were at fault for polluting the area, or the owner who allowed it to happen, responsible. That person or persons will then be charged with the responsibility of cleaning it up to an acceptable level. If the responsible parties fail to comply, then the council will send out a remediation notice informing them of when it must be done.

If someone fails to do the necessary things to bring the land up to an acceptable standard, then they could face some type of legal action. For obvious reasons, this is something that should be avoided. The first step is to establish that you are not the responsible party but if you’re unable to do that and held liable, then you should start negotiations e with the council on how the clean up operations should be handled.

This article provides some basic information for you, but we recommend that you check out this useful site as well, plus do other searches about Contaminated land.

If you are contemplating working through an umbrella company, you will likely spend a large amount of time comparing your options. In doing so, you will almost certainly see advertisements from umbrella companies that claim to offer “90% plus take home pay”.

As a contractor seeking to maximise their earnings, 90% take home pay sounds like a dream come true – but unfortunately, these claims can quickly turn into a nightmare.

90% take home pay is never feasible

The idea of being able to keep 90% of what you earn may be tempting, but it can only be achieved under a very specific set of circumstances. Let’s crunch the numbers:

• The rate of tax is the rate that anyone earning above the tax-free personal allowance must pay by law.
• Everyone receives a tax-free personal allowance of £11,850.
• Anything earned after this amount is taxable. This means that anyone in full-time employment must pay tax, as a full 40-hour week at the national minimum wage exceeds the tax-free allowance threshold. If you work full time, you must pay tax.
• If you earn between £11,851 and £46,350, you will pay 20% of your taxable income in tax.
• If you earn between £46,351 and £150,000, you will pay 40% in tax.
• If you earn over £150,000, you will pay 45%.

Given the above, we can conclude that unless you are earning less than your personal allowance of £11,850, you must pay tax at a rate of 20%.

So how can you legally achieve a take home pay of 90% – which is just a 10% tax rate – with an umbrella company? You can’t. It’s illegal.

So why do companies advertise 90% take home pay?

There are two reasons an umbrella company may advertise a 90% take home pay, and neither are positive:

• They are advertising this rate with a caveat – i.e. you can achieve this rate if you earn less than your personal allowance. This isn’t technically a lie as it can be true, but if you work full-time, you will definitely earn over your personal allowance – so really, it’s just marketing spin that applies to only a tiny percentage of contractors.
• More worryingly, a 90% take home pay could indicate that the umbrella company are involved in a tax avoidance scheme. If this is the case, working through such a company could have catastrophic consequences for you in the future.

HMRC and tax avoidance

Tax avoidance schemes are always illegal.

If HMRC find that you owe money in unpaid taxes, they will issue a demand for payment. You can try to argue that you did not avoid tax – your umbrella company did – but HMRC have the power to demand you ‘pay now, dispute later’. Due to this, you would still need to pay the back-taxes even if it is the umbrella company who were at fault. You could then dispute this with HMRC and claim a refund, but only after you have settled the debt in full – and even then, there’s no guarantee that the appeal would be successful.

So what should you do instead?

• Ignore companies that claim to offer you 90% take home pay, as this cannot be legal. This point cannot be overstated enough; there is no such thing as a legal or permitted tax avoidance scheme – no matter what companies claim on their website!
• Look for an umbrella company that pays you via the PAYE system
• Check all monies received to ensure that you are paying the right rate of tax for your income.

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