United Kingdom
3 March 2011 - HMRC gives EBT warning
HMRC was warned businesses in its 'Spotllights 11' announcement that it will scrutinise Employee Benefit Trust (EBT) arrangements made in the run up to the introduction of new legislation in the Finance Act 2011 which rely on the availability of credit for loan repayments made before 6 April 2012.
HMRC considers that "...while these convoluted arrangements seek to weave a way through the legal changes they do not succeed. Even if they did HMRC would still challenge them as delivering remuneration which should have been subject to PAYE from first principles."
This underlines the need for extreme care and expert professional advice when making any further EBT arrangements.
Please contact Jeff Webber to discuss the proposed EBT/EFRBS rule changes.