Whats the crack with EBT'S

**Fred Bloggs** · 14 July 2009, 11:14

Tried the search facility then?

**pmeswani** · 14 July 2009, 11:23

Originally posted by ANSOF View Post

hI All,

One of my friends has been banging on about this EBT (employee benefit trust) hes involved with and claims he avoids alot of tax.

Anyone with any experience on this?

Has your friend been investigated by the Inland Revenue yet? If not, tell him / her to expect one soon.

**cojak** · 14 July 2009, 12:23

Originally posted by ANSOF View Post

hI All,

One of my friends has been banging on about this EBT (employee benefit trust) hes involved with and claims he avoids alot of tax.

Anyone with any experience on this?

Is he on the Board?

That's the only way he'll make a profit on it (unless HMRC ban dividends, of course...)

**expat** · 14 July 2009, 13:04

Originally posted by pmeswani View Post

Has your friend been investigated by the Inland Revenue yet? If not, tell him / her to expect one soon.

No, his friend will be along in a moment with post count = 1, to satisfy our curiosity and let know how we can take advantage of this.

**Tax Lord** · 14 July 2009, 13:19

Whats the crack with EBT’s?

Ok, without boring you too much I will try to explain.

If your colleague is recommending you join his/her ETB scheme, DON’T!!!

An ETB should be set up for the purposes of the individual Limited Company, costs will be in the region of £15k. Most reputable EBT providers will only set up a trust for companies with over £150k profit before tax, its not worth setting one up for anything less.

The idea is to transfer most/all the profits into an EFRBS, (Employment Financed Retirement Benefit Scheme) where you can withdraw the funds when and if you need it, this will not attract any personal tax.

In this current tax year (2009/10) EFRBS are legal in the UK, how long will this be the case, your guess is as good as mine.

**BrilloPad** · 14 July 2009, 13:23

On the surface they are quite similar to loan schemes.

IMO stick well clear.

See the bn66 thread for what can happen.

**ANSOF** · 14 July 2009, 13:23

Just wanted some advice not a grilling. He informed me he put money in and took it back out as a loan to minimse tax. wanted to see if this was above board that's all?

**pmeswani** · 14 July 2009, 14:23

Originally posted by expat View Post

No, his friend will be along in a moment with post count = 1, to satisfy our curiosity and let know how we can take advantage of this.

Darn true.

**ANSOF** · 14 July 2009, 14:27

Originally posted by Tax Lord View Post

Whats the crack with EBT’s?

Ok, without boring you too much I will try to explain.

If your colleague is recommending you join his/her ETB scheme, DON’T!!!

An ETB should be set up for the purposes of the individual Limited Company, costs will be in the region of £15k. Most reputable EBT providers will only set up a trust for companies with over £150k profit before tax, its not worth setting one up for anything less.

The idea is to transfer most/all the profits into an EFRBS, (Employment Financed Retirement Benefit Scheme) where you can withdraw the funds when and if you need it, this will not attract any personal tax.

In this current tax year (2009/10) EFRBS are legal in the UK, how long will this be the case, your guess is as good as mine.

Thanks for information. I dont earn that for a kick off anyway!

Whats the crack with EBT'S