Norla EBT Loan Scheme

[LisaContractorUmbrella]

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

You have read this thread have you

[Vallah]

There are a number of EBT firms offering a very good, fully compliant service.

[SackmanandCo]

its not a benefit in kind for life, only while you are an employee. So if the Company ceased trading, the benefit would cease.

[Imola]

There are a number of EBT firms offering a very good, fully compliant service.

Hi I am completely new here so forgive me if this is in any way out of line.

I have been with Norla for about 4 years now but they have recently put up their fee by 20%.

Can anyone suggest any other providers or alternatives that I might look at for a comparison? This would be very helpful as I have limited time to consider a change (new contact starting soon).

Note I am not asking you to specifically recommend or advertise any providers. But I would really appreciate any help putting a short list together.

By the way aside from the price increase I have been very happy with Norla over the years.

Thanks guys

[SackmanandCo]

I dont agree that there plenty of good providers for EBT strategies for contractors. In my opinion, there are actually only a handful, the same as any tax avoidance product. There are networks of accountants in the market place who do all the due diligence for you and have access to information that individuals like you and I will never get to see.

[Waldorf]

By the way aside from the price increase I have been very happy with Norla over the years.

I guess you have not received your letter from HMRC yet!

[xseoer]

Yep, you are stuffed.

You may be able to minimise the amount of tax that you eventually pay, depending on your circumstances; but you will still be liable for some tax.

Options are
- write off the loan, pay the NI and income tax that is due. Ouch.
- pay it back over a number of years. This can be tax efficient if you can pay yourself less than you spend, and keep yourself below the higher rate tax threshold. However, you will continue to need to declare and pay NI and income tax on the outstanding balance in each year.
- take out a personal loan, use it to pay back the company, then wind up the company and take the cash back out as a capital distribution. You will need advice from an accountant who knows your circumstances on this one - there are various rules that HMRC lay down about capital taper relief that you will need to comply with.

... and then don't do it again.

Are you an accountant?
How to avoid tax?

[cojak]

Are you an accountant?
How to avoid tax?

Get yourself a good accountant.

And there's no good asking XLMonkey about this, this thread is 3 years old!

(He wasn't, btw.)

[kincaide]

I have been looking into the norla/EBT thing for a few days since a friend of mine suggested it wasn't really something to be involved in. In my search I have come across a number of posts stating it was "Tax advoidance" and some people where receiving letters that there were being investigated (these posts were from a number of years ago), but I haven't read anywhere that anything has come from these letters, nor that anyone has actually been "done" for using this scheme.

It seems the tax man has been interested in the Norla EBT for a number of years (since at least 2006), but it hasn't been closed down. Nor any action taken. Does anyone know of any information that differs to this at all?

[Profmore]

A way out of Norla and other EBTs?

I have read the EBT thread with interest and it seems the implications are not always fully explained/understood in advance.

Although EBTs are still a viable option (yes there sems a good handful of companies that still provide these solutions). I am reliably informed by a friend that if you regret your decision or no longer need an EBT, an 'escape route' does exist - no tunnels, bribing guards or barbed wire.

Would be happy to put anyone in touch.