EBT again

[maxima]

You all will laugh..

I dont work for any accountancy, umbrella or EBT.... Some of you remember - I am a foreigner and cant get job even to wash cars here. (thanks god - I hate to wash cars)

Today one guy (local) advised me to go with EBT. He said he using it for a long time. He works in contracting for many years. He is working in financial institutions and very highly paid. He doesnt look like idiot and knowing my rate and my experience I can imagine that he has 500-600 a day. I dont think a daft person will get such a money.

May be EBT is not that bad? May be it just lack of knoweldge makes it look dodgy?

May be all guys who use 'proper' schemas are in bahamas and losers who pay taxes are here answering on posts .. May be this is why we dont see positive answers about EBT ?

Tell me I am wrong. please

[kirk]

Too many smilies!

EBT?

[Cowboy Bob]

EBT is a loan scheme. They loan you the money (and promise not to call in the loans) so less tax is paid. Sounds great, until you consider one important point. If the company operating the EBT goes bust and the administrators come in, guess who is going to have to pay back all that money they were loaned when the administrators come knocking, because they aren't going to honour what the company originally said about not calling in the loans...

[kirk]

EBT is a loan scheme. They loan you the money (and promise not to call in the loans) so less tax is paid. Sounds great, until you consider one important point. If the company operating the EBT goes bust and the administrators come in, guess who is going to have to pay back all that money they were loaned when the administrators come knocking, because they aren't going to honour what the company originally said about not calling in the loans...

Maybe I'm being dumb here, but I still don't get it

Anyone got a URL that exlpains it?!?

[Cowboy Bob]

http://www.shout99.com/contractors/s...id=12986&n=300

Key Quote:-

Potential Implications of using this arrangement

If the Inland Revenue were to investigate the composite company, the responsibility for meeting any consequent liabilities (in respect of unpaid PAYE, for example) would rest with the composite company. That company has limited liability, however, and would in all likelihood be wound up before the outstanding payments were made. In these circumstances the Inland Revenue would seek to recover the shortfall from the individual contractors.

In essence, there is the potential for contractors not only to lose entirely ‘contributions’ made to the EBT but not yet distributed – and to face substantial liabilities for sums previously received.

[kirk]

http://www.shout99.com/contractors/s...id=12986&n=300

Key Quote:-

Potential Implications of using this arrangement

If the Inland Revenue were to investigate the composite company, the responsibility for meeting any consequent liabilities (in respect of unpaid PAYE, for example) would rest with the composite company. That company has limited liability, however, and would in all likelihood be wound up before the outstanding payments were made. In these circumstances the Inland Revenue would seek to recover the shortfall from the individual contractors.

In essence, there is the potential for contractors not only to lose entirely ‘contributions’ made to the EBT but not yet distributed – and to face substantial liabilities for sums previously received.

Thanks, best avoided then!

[maxima]

yeah that what exactly i said.. losers got scared and carry away..

but if the trust is abroad and is off-shore IR can lick they butt and never get a penny from there.

potentially your wife can cheat on your and you will end under the bridge drinkling cheap gin.. so what?

[kirk]

yeah that what exactly i said.. losers got scared and carry away..

but if the trust is abroad and is off-shore IR can lick they butt and never get a penny from there.

potentially your wife can cheat on your and you will end under the bridge drinkling cheap gin.. so what?

cheap gin?!?!? no way, I'm a contractor !!!

[maxima]

sure thing. they will build a special Contractor Bridge. gonna drink scotch then!

[Cowboy Bob]

but if the trust is abroad and is off-shore IR can lick they butt and never get a penny from there.

Which is why they'll get it from you.