Norla EBT Loan Scheme

[Jog On]

Yeah thats what it says. Tis an odd date. If they had the date as 30th March 2011 alarm bells would have rung a lot more as this is the last working day of this financial year. So a bit like a director loan.. you would have to pay it back within that financial year.

However with it being the following year am slightly confused. I have an outstanding call with a TA on this.

what i would say is that you have the might of all the lawyers of the overpaid footie stars, plus numerous others. You would actually be surprised how many people use a Company or Self Managed EBTs (the latter is what HMRC wants to address).

Alternatively you can set up your own limited co and run your contract that way. I guess with the new VAT change and being able to pay a flat rate might also top up your % take home

I think in the longer run this is your best bet if you don't want to keep hopping from scheme to scheme as they get closed down.

[lowpaidworker]

I think in the longer run this is your best bet if you don't want to keep hopping from scheme to scheme as they get closed down.

Yes I think your right. I've only been in the scheme just over a year and must admit you alwasy feel nervous. Its like I have some stupid little HMRC tax advisor waving my tax return in my face but cant actually hand it to me yet !

Going to swap over to a Ltd. in March. Unless someone can explain the repayment date back to me.

[ChimpMaster]

Yes I think your right. I've only been in the scheme just over a year and must admit you alwasy feel nervous. Its like I have some stupid little HMRC tax advisor waving my tax return in my face but cant actually hand it to me yet !

Going to swap over to a Ltd. in March. Unless someone can explain the repayment date back to me.

I think you need to switch to a Ltd now, unless of course you're happy paying full PAYE and NI on all your earnings 'til March....

[LisaContractorUmbrella]

Yes I think your right. I've only been in the scheme just over a year and must admit you alwasy feel nervous. Its like I have some stupid little HMRC tax advisor waving my tax return in my face but cant actually hand it to me yet !

Going to swap over to a Ltd. in March. Unless someone can explain the repayment date back to me.

From what I understand the repayment date is completely irrelevent - was there any explanation given with the announcement?

[Tomo1971]

Wake up and smell the coffee, please. Your cosy world just stopped turning...

Any income you get from Norla or anyone else after December 9th 2010 will be taxed at full PAYE and NICs at April tax year end. That ain't going to change. Make sure you've got some savings.

Whos responsibilty is it to pay PAYE tax...an employer or an employee?

If the employer (the EBT company) pays the employee in either a wage or through a trust and it is retrospectivly then decided that they paid the wrong amount of tax on those earnings then surely the responsibilty to pay that tax to the revenue is the employers, not the employee's.

S.

[malvolio]

Whos responsibilty is it to pay PAYE tax...an employer or an employee?

If the employer (the EBT company) pays the employee in either a wage or through a trust and it is retrospectivly then decided that they paid the wrong amount of tax on those earnings then surely the responsibilty to pay that tax to the revenue is the employers, not the employee's.

S.

Dream on. Your "employer" won't be paying anything. Whatever is paid will come to you as a tax bill shortly after April 6th.

[malvolio]

Aren't you gutted you missed out on all that lovely free money Malvolio ! It's a shame you can't turn that bitterness into something productive.

I've got enough money, thanks, and why should I be bitter about not being a greedy, unpatriotic hypocrite?

[pmeswani]

I've got enough money, thanks, and why should I be bitter about not being a greedy, unpatriotic hypocrite?

WHS.

Personally, I don't mind paying some tax (either via Personal Tax, Corporation Tax or both). I prefer to minimise it the best way I can rather than not paying for it at all.

[BobTheCoder]

Aren't you gutted you missed out on all that lovely free money Malvolio ! It's a shame you can't turn that bitterness into something productive.

I wouldn't be celebrating quite yet, there's an interesting paragraph in the draft legislation:

Existing casework and litigation

Some of the types of transaction which will be chargeable to tax under this measure (including
the earmarking of funds held in a discretionary trust) are not accepted by HM Revenue &
Customs (HMRC) as effective in avoiding tax under the present law. HMRC will continue to
challenge such transactions under the present law, including in litigation where necessary

[LisaContractorUmbrella]

Aren't you gutted you missed out on all that lovely free money Malvolio ! It's a shame you can't turn that bitterness into something productive.

Free money????? Until you have written confirmation from HMR&C that they are quite happy that you have paid the correct amount of tax for the last 7 years and receive similar confirmation for the next 7 years I would hold off being smug if I were you