EBT - Employee Benefit Trust EBT - Employee Benefit Trust - Page 3
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  1. #21

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    malvolio - scorchio!

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    Quote Originally Posted by zeitghost View Post
    Which part of the above did you not understand?
    All of it, obviously. Perhaps we should point him /her at the threads elsewhere around here, where people are being faced with back tax demands into 6 figures, or for the return of loans that will bankrupt them...

    Or perhaps find out who he works for... I mean, the username could be read as "This is MP - Wanna decent income?"
    Blog? What blog...?

  2. #22

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    Quote Originally Posted by malvolio View Post
    All of it, obviously. Perhaps we should point him /her at the threads elsewhere around here, where people are being faced with back tax demands into 6 figures, or for the return of loans that will bankrupt them...

    Or perhaps find out who he works for... I mean, the username could be read as "This is MP - Wanna decent income?"

    Yes please give me some pointers as I can't search for AML, I found some stuff under EBT but didn't see any horror stories about having to pay back loans.

    I found stuff to do with double taxation relief and Montpellier but these are not relevant to an EBT running a UK PAYE scheme as its basis.

    I found stuff to do with corporation tax bills but these should all be accounted for now in the EBT setup and if the EBT is a true EBT the trustees should be working for the beneficeries not the company paying into the EBT. I'm sure there are scammers out there but if all this is done properly and if I can verify it then it seems the risk is minimal until the legislation changes?

    Cheers

  3. #23

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    Quote Originally Posted by malvolio View Post
    Or perhaps find out who he works for... I mean, the username could be read as "This is MP - Wanna decent income?"
    No don't panic I'm not an MP nor am I hmrc, just a worker with a large mortgage and family to support who was made redundant and has found myself contracting just to get by...

  4. #24

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    Quote Originally Posted by malvolio View Post
    There are a few loan-based schemes around, where the loan magically disappears every so often and you get a new one. Snag is, as soon as the loan is cancelled, you are liable for the tax on it as though it were earned income. Most of the sites promoting such schemes seem to forget to mention that bit.

    Plus, of course, if you are UK tax resident, any income anywhere is taxable in the UK.

    EBTs are illegal in the same way that MSCs are - if you use them, no problem as long as you pay full taxes, so not really much help.

    The old rule applies - if it looks too good to be true, it probably is. Stick to umbrellas or your own company.
    I think the argument is that if the loan is written off after you cease to be an employee, it is not taxable. Alternatively, it could be left in place until you die, which helps minimise IHT, and then it gets written off after probate is granted.

    Not something I am particularly keen on as the loans would always worry me but I'm not sure how HMRC would go about attacking them, without introducing restrospective legislation. I guess they would argue they haven't done that with BN66 as apparently they were just clarifying the existing legislation!
    Last edited by THEPUMA; 21st August 2008 at 17:21. Reason: too many commas

  5. #25

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    Quote Originally Posted by malvolio View Post
    There are a few loan-based schemes around, where the loan magically disappears every so often and you get a new one. Snag is, as soon as the loan is cancelled, you are liable for the tax on it as though it were earned income. Most of the sites promoting such schemes seem to forget to mention that bit.

    Plus, of course, if you are UK tax resident, any income anywhere is taxable in the UK.

    EBTs are illegal in the same way that MSCs are - if you use them, no problem as long as you pay full taxes, so not really much help.

    The old rule applies - if it looks too good to be true, it probably is. Stick to umbrellas or your own company.
    Good advice given 31st July 2007 14:11

  6. #26

    Some things in Moderation

    cojak is a fount of knowledge

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    Quote Originally Posted by AtW View Post
    Good advice given 31st July 2007 14:11
    Mal was a soothsayer waaayyyyy before that.... http://forums.contractoruk.com/accou...html#post34485

    Quote Originally Posted by malvolio View Post
    OK, I'm convinced. I'm a neo-luddite of the first order. And anyway, my work isn't boring and I earn shedloads anyway. na-na-ni-nana

    But...


    Yes they can, sadly. As of the last budget, Dim Prawn made it possible for future tax legislation to be made retrospective to December 2004. So if they outlaw offshore EBTs at some point, they will be allowed to chase the back tax to that point. Another triumph of New Labour's disregard for common practice...
    ...2005!

  7. #27

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    SueEllen is a fount of knowledge

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    Quote Originally Posted by zeitghost View Post
    And yet people still fell for the snake oil salesmen's patter.

    Makes you weep for the idiocy of hu-manity.

    I wonder if Ollie heeded the advice to avoid the snake oil or if he's expecting a mammoth tax bill sometime soon.

    I suppose we'll never know.
    It's called greed.
    "You’re just a bad memory who doesn’t know when to go away" JR

  8. #28

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    TestMangler - scorchio!

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    Quote Originally Posted by SueEllen View Post
    It's called greed.
    See, that's just bollocks. I personally know two people, who, on being made redundant, applied for jobs only to be contacted by agents about contracts (a subject they knew lass than nothing about). Agent secured them contracts and basically just told them, to get paid you just have to sign this form with our preferred umbrella company. That umbrella company was Bedouin. As far as they were concerned, they were being advised by professional on a subject that they needed advice on.

    I agree some people have been sold the idea on the basis of greed, but equally, a lot were sold it believing their advisor to be an expert in the subject.
    On Desolation Boulevard, they'd light the faded lights.....

  9. #29

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    Why are they not sueing those agents for negligence?

    And they had no idea why take home was so high compared to other people in same contract?

  10. #30

    Suffers Fools...Badly!

    shaunbhoy is always on top

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    Quote Originally Posted by TestMangler View Post
    I agree some people have been sold the idea on the basis of greed, but equally, a lot were sold it believing their advisor to be an expert in the subject.


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