Norla EBT Loan Scheme

[lowpaidworker]

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?

Payment for December this thursday is frozen. They are hoping to make a payment before Xmas. They have their lawyers reviewing 500 pages of 2011 Bill specifically the following

http://www.hmrc.gov.uk/budget-update...tax/wms-aa.pdf

Think they have 3 options.

1. The new legislation is not meant to target an Employees EBT shceme... this is probably being looked at by lots of big companies that have EBT schemes rolled up in their pension.... I have heard the government havent thought through this EBT tax change too well and its hitting a lot of big firms
2. They make the payment but you will be subject to paying the proportion of tax roughly equal to PAYE when you do your 2010/11 tax return
3. Your EBT payment just becomes part of your PAYE so you pay your normal tax at the thresholds

[Imola]

Thanks Low

Does anyone have any update on this - I heard Norla are going to make an EBT payment and release the previously witheld funds BUT customers will be forced to sign a new agreement before they make payment.

I haven't heard any details as to what new conditions or liabilities customers will have to agree to in order to receive their payment, does anyone know?

Also, what options are Norla customers now looking at? Do you intend to leave after the next payment or will you wait and see if Norla offer a new scheme?

If the former, let us know what setups you are considering.

My thinking is to wait and see until the New Year and allow Norla some time to propose a *robust* alternative setup.

While waiting I will look into my options.

Any thoughts on the above?

[LondonTech]

Thanks Low

Does anyone have any update on this - I heard Norla are going to make an EBT payment and release the previously witheld funds BUT customers will be forced to sign a new agreement before they make payment.

I haven't heard any details as to what new conditions or liabilities customers will have to agree to in order to receive their payment, does anyone know?

Also, what options are Norla customers now looking at? Do you intend to leave after the next payment or will you wait and see if Norla offer a new scheme?

If the former, let us know what setups you are considering.

My thinking is to wait and see until the New Year and allow Norla some time to propose a *robust* alternative setup.

While waiting I will look into my options.

Any thoughts on the above?

I'm with Norla too and I'm waiting for the paperwork to come through then make a decision, I'm tempted by the own Ltd company route but ~70% of gross instead of the EBT offering is not tempting. Will wait and see what they come up with, might wait until my contract renewal in March.

[malvolio]

I'm with Norla too and I'm waiting for the paperwork to come through then make a decision, I'm tempted by the own Ltd company route but ~70% of gross instead of the EBT offering is not tempting. Will wait and see what they come up with, might wait until my contract renewal in March.

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.

[ChimpMaster]

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.

It makes you laugh (or cry even) seeing what goes through some peoples' minds. I'm sure Norla and other EBT/Loan/Forex scheme providers are also telling their members to 'hang in there' because they have some 'new, wonderful scheme' that they are 'finalising the details on and will be releasing soon'.

Look at the whole picture - 70% is a good return. At least you pay some tax and some contribution to society - yes none of us are happy paying 45% tax as a permie but paying 3% as an EBT/Loan/Forex scheme member is pretty damn selfish. And you lose up to 10% of your gross income in 'fees'. I can understand why people are used to getting 85% - 95% return on their income, but those days are gone so thank your lucky stars that you at least had some time in the scheme (unless the scheme is investigated and found illegal) and move on. At least you haven't been screwed over like the contractors affected by BN66 (...yet).

[Imola]

New loan agreement

I hear the new loan agreement says the loan is due for repayment in 2012 - can anyone confirm this?

[floydstar]

New Loan Agreement this morning:

Section:
3.
3.1 The Loan shall become due and payable on 30 March 2012

Can I not sign the new Agreement and withdraw the funds back to my 'agency' to hold until I investigate and arrange an alternative to Norla/Edge?

[malvolio]

I hear the new loan agreement says the loan is due for repayment in 2012 - can anyone confirm this?

Sigh...

[LisaContractorUmbrella]

I hear the new loan agreement says that all our income will be taxed through PAYE from now on - can anyone confirm this?

[lowpaidworker]

I hear the new loan agreement says the loan is due for repayment in 2012 - can anyone confirm this?

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