Originally posted by zeitghost
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EBT - Employee Benefit Trust
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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.Blog? What blog...?Comment
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Originally posted by malvolio View PostThere 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.
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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.
In fact AML are now saying that "The recent Sempra tax case won against HMRC further strengthens the robustness of our Employee Benefit Trust approach. The end result is that AML people are continuing to receive between 82% and 85% of net take home, after tax and costs paid. ".
Regarding the cancellation of the loan being subject to tax, does anyone know where it says this on the hmrc web site - I've done a search but not found anything?
Regarding the statement that EBTs are illegal in the same way as MSCs, I cannot find anything on the hmrc that supports this - I'd be interested to see what the situation is.This default font is sooooooooooooo boring and so are short usernamesComment
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Originally posted by Ollie View PostAnyone use EBT's?
Looking for advice, advantages, disadvantages, do they work, offshore, legality.
Cheers
Advantages - The government pay your accomodation when you are caught
Disadvantages - your accomodation in a cell is imposed on you
Do they work - Right up until either a) The company getting your money goes belly up and you are saddled with a secured loan or b) You are caught by TPTB
Legality - The government made them illegal during the last budget
Before engaging an EBT please ensure that you have your bargepole ready and avoid like the plague.Comment
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Originally posted by zathras View PostAdvantages - The government pay your accomodation when you are caughtRule #76: No excuses. Play like a champion.Comment
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Originally posted by zeitghostBreadfruit?Down with racism. Long live miscegenation!Comment
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