Norla EBT Loan Scheme

[Jet Setter]

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.

What, you mean other than just leaving? I don't believe those structures have you confined like a prisoner.

[Profmore]

EBT

What, you mean other than just leaving? I don't believe those structures have you confined like a prisoner.

You are correct in that you not 'locked' in but there is usually an overhead to keep one going. IF the EBT is no longer required, I believe to end it would usually create a tax liability as the shelter is gone. The 'escape' route can ease this tax burden.

[LondonTech]

Just found this thread, I've been with Norla for several years and never had a problem with them. As far as I know the whole EBT scheme as a method of payment is under investigation by HMRC at quite a high level, one below serious fraud I'm told. It's very likely that the rules will change and EBT's will be classified as evasion rather than avoidance the big concern (for me anyway) is if they retrospectively apply these rules but all we can do for now is watch this space. If it came to it I'd start highlighting minister's expense rules not being applied retrospectively and other HMRC decisions where debt's have been written off so citing a case of me (and I'm sure others) being treated differently - time will tell.

My question is for those of you with Norla, I've recently received and email from them pushing the EBT date to November which is about 8 weeks from the last one and the largest gap I have ever experienced and after the payment 'glitch' this month I'm wondering if anyone else has concerns?

[eubria]

I was with Norla/Edge EBT scheme for 10 months in 2008. Left when I saw the bad press about EBTs. Just received a notice from HMRC Specialist Investigations.
Norla / Edge have re-directed me to Advantage Accounts who (apparently) are engaged by Edge to handle tax isues relating to the scheme. Apparently they are taking advice from lawyers on how to respond to the HMRC on behalf of c20 clients who have received the investigation notice.

So far Norla, Edge and Advantage Accounts have been unable to provide me with the HMRC Registration number to subtantiate their claims that the scheme was approved by HMRC.

It may be helpful if everyone on a Norla / Edge EBT scheme (current or past) applies pressure on Norla / Edge to reveal details of the true status of their scheme and provide copies of the tax advice they (allegedly) received saying it was compliant with legislation before waiting to receive the HMRC investigation notice.

[meanttobeworking]

I've been with Norla since May 2010, and been on the same contract (my first ever contract) ever since. I happen to think that the scheme is theoretically ok (for now), it's overall not worth the stress, worry, and general 'untidyness' of having the never-to-be-repaid loan hanging around.

My intention is to leave at the end of this tax year, and make other arrangements that let me sleep at night a little better. My question is - will Norla process my tax return for the year(ish) that I was employed by them when it's due if I'm no longer an employee? And if they won't, how do I work out what to submit? Obviously I can put this question to Norla themselves, but I'm keeping my cards close to my chest at the moment...

[DaveB]

I've been with Norla since May 2010, and been on the same contract (my first ever contract) ever since. I happen to think that the scheme is theoretically ok (for now), it's overall not worth the stress, worry, and general 'untidyness' of having the never-to-be-repaid loan hanging around.

My intention is to leave at the end of this tax year, and make other arrangements that let me sleep at night a little better. My question is - will Norla process my tax return for the year(ish) that I was employed by them when it's due if I'm no longer an employee? And if they won't, how do I work out what to submit? Obviously I can put this question to Norla themselves, but I'm keeping my cards close to my chest at the moment...

Those wanting to bail out of EBT schemes may want to read the Legal Surgery Thread for an example of what can happen.

[sal626]

Those wanting to bail out of EBT schemes may want to read the Legal Surgery Thread for an example of what can happen.

….With one particular scheme that is….
I know of at least 5 different EBT scheme providers which friends/colleagues have left without any fees to pay or any other issues.

[Vallah]

Just found this thread, I've been with Norla for several years and never had a problem with them. As far as I know the whole EBT scheme as a method of payment is under investigation by HMRC at quite a high level, one below serious fraud I'm told. It's very likely that the rules will change and EBT's will be classified as evasion rather than avoidance the big concern (for me anyway) is if they retrospectively apply these rules but all we can do for now is watch this space. If it came to it I'd start highlighting minister's expense rules not being applied retrospectively and other HMRC decisions where debt's have been written off so citing a case of me (and I'm sure others) being treated differently - time will tell.

My question is for those of you with Norla, I've recently received and email from them pushing the EBT date to November which is about 8 weeks from the last one and the largest gap I have ever experienced and after the payment 'glitch' this month I'm wondering if anyone else has concerns?

You can't just class EBTs as "evasion", that's pure nonsense. Evasion is where you underdeclare your earnings. Any decent EBT scheme will fully and openly declare all income. They well make EBTs less tax efficient, in which case there will still be ways to legitimately pay less tax.

[Alan Jones]

My question is for those of you with Norla, I've recently received and email from them pushing the EBT date to November which is about 8 weeks from the last one and the largest gap I have ever experienced and after the payment 'glitch' this month I'm wondering if anyone else has concerns?

I think the increase in the "gap" between loans is to help "fend" off the taxman BUT this may be too little to late. Some EBT's pay loans monthly AND this is a "red rag" to HMRC.

The Government have stated they are going to attack EBT's through legislation in April 2001 and imho they will try to attack prior years by arguing - in the case of some scheme providers - the loans are "disguised" salary.

See my thread re EBT's and "fraudulent tax avoidance".

[Imola]

Norla status update

Hi does anyone have any reliable information about what is happening with the Norla scheme right now?

Are people being paid their November EBTs and so on, and has there been any formal updates or notices from Norla to their customers?