Norla EBT Loan Scheme

[PeterF]

Hi Speedysloth

I have made REPEATED attempts to contact Edge Consulting regarding the loans and leaving the scheme. They have not, months later, returned any calls or answered my emails.

Slight aside, I did speak to someone there in December regarding retrospective legislation/BN66/etc, they had no information or answers and indeed at times seemed bizarrely unaware of most of it.

They have left me strongly suspecting there is a big something they do not want their clients to know. My limited company is almost set-up, I'll be leaving the EBT in a couple of weeks. I feel foolish for not having made some enquiries with Edge earlier.

Be cautious.

Peter.

[jetrimby]

Speedysloth's replies were perfect! The trustees act in the best interests of the employee! (just make sure the scheme uses a good internationally know firm of professional trustees rather than a couple of sheep farmers on the Isles on Man !)

The loan Benefit in Kind tax applies until the end of the tax year in which you cease employment So definately does not go on for ever but sometimes worth changing companies / schemes to start a new loan rolling. Can be useful for care home fees and IVA etc as well if planned for as well as for IHT planning. Not something you want to think about whilst working but it is often all retireees thing about when retired!

If doing one of these schemes make sure you have it properly explained and that you have someone who you can talk to a things move on and more queries arise etc...... The last thing you ever want to do is get the loan written off as, although the Benefit in Kind charge stops when you leave, the tax charge on a write off does not AND anyone suggesting paying it back is even more stupid if you are so put off by them pay the tax (say 40%) dont pay 100% back ! They wont know what to do with it anyway as it is in YOUR trust !
Hope this helps!

[Speedysloth]

Hi Peter

If you are having problems with your EBT company, you should give mine a call (PM me if you want the info... I dont want to advertise on the boards) I am yet to have a problem with them, and would happily recommend them to anyone.

I know you're already setting up a Limited Company, but then they may at the very least be able to answer a few questions that Edge couldn't...

Speedy

[cshylock]

i too have had letters from HMRC informing me of their inquiries into my 05/06 return and my 06/07 return. I was with Norla/Edge from June 05 to Oct 06 only. I understand many other contractors are also have similar inquiries running as well. However i know personally of some contractors who have been using the Norla/Edge scheme for many years without any inquiries,,,,, is this just random luck ?

Does anyone have a simialr situation to me whereby i have been owed a refund on my 07/08 return (made small loss in a little shop) but my tax affairs have been frozen due to this active inquiry.
They are obviously happy to take my money based on current calculations but not to refund it when owed based on current calculations.
I have not even heard from HMRC in over 14 months but my refund for example is still frozen...... does anyone know how long can this go on ?

[sal626]

There is no time limit on HMRC queries. I’ve got my return from an EBT scheme I used to be in under query as well.

However, I do know of someone who had their 05/06 return under query, and was due a refund of about £1200 in 09. He didn’t automatically get it, but he called up and got someone to process it through. I guess it may have been a case of left hand doesn’t know what right hand is doing….

[cshylock]

thanks sal626, you could be right.
I did call the enquiries investigator a year ago, and he told me at the time they could not refund tax account frozen money when there was a possibility they could find something in their investigations.
A year on i have called HMRC today to find that the case officer has changed and the new officer was not aware of the length of the outstanding inquiry. He said he would look into into it for me and give his opinion in few days.
Its slightly unerving when the investigating officer is talking to you directly, asking questions which you are not sure how to answer, and both of you are avoiding using certain words, or being economic with the questions/answers.

Does anyone else have similar Edge consulting inquiries or experiences with HMRC?

[sal626]

Would be interesting to know what his opinion may be? I suspect it may be “we’re still progressing it”. Let us know.
If you do speak to him again, you can mention that there are two Special commissioner rulings against HMRC on EBTS (Dextra and Sempra).

With my query, HMRC said that they are waiting for Sempra decision to progress further – but since they lost that – and withdrew their appeal - they haven’t done jack on the enquiry…either way.

[cshylock]

I have googled these cases.
Sempra was a case about advance payments on corporation tax, i dont see what this has to do with EBT loans. ?
the Dextra case considered if contributions to the EBT were “potential emoluments”. the high court rulled in favour of HMRC.

So how do these cases help me?

[sal626]

I have googled these cases.
Sempra was a case about advance payments on corporation tax, i dont see what this has to do with EBT loans. ?
the Dextra case considered if contributions to the EBT were “potential emoluments”. the high court rulled in favour of HMRC.

So how do these cases help me?

Dude, ask Admin to give you PM rights and send me a PM....

[MMC]

how do I contact you Speedy?

Hi Peter

If you are having problems with your EBT company, you should give mine a call (PM me if you want the info... I dont want to advertise on the boards) I am yet to have a problem with them, and would happily recommend them to anyone.

I know you're already setting up a Limited Company, but then they may at the very least be able to answer a few questions that Edge couldn't...

Speedy

Hi Speedy?
How can I contact you? I don't see a PM option?
I've had friends who have gone the EBT route and others who say its a bad idea.

MMC