Avoiding Tax

[SueEllen]

Yes, so all sign up with Lisa's umbrella and pay your two lots of NI like good little wage slaves.

Lisa's umbrella is also linked to an accountancy company for limited companies that deals with lots of contractors.

I think she needs to buy more coffee.

[Fred Bloggs]

If you live in the UK, are tax resident in the UK and your income is earned in the UK you are liable for UK tax.

Whilst appreciating Puma's input, I have to say that for 99.9% of us I think Lisa is entirely correct. And if you want to sleep at night she's 100% correct IMO.

[ASB]

We all have, many times…

Fact: EBT schemes are different to BN66
Fact: No one (AFAIK) has been done on an EBT scheme
Fact: there are already 2 Special commissioner rulings against HMRC on EBTs (Sempra and Dextra – HMRC did not even appeal against Dextra)
Fact: EBT schemes are going to be closed down via legislation in april 2011.

Not known: If the legislation is going to be retrospective or not….

I personally think not, but yes, outcome on BN66 case may have an impact.

But already some EBT scheme providers have said that retrospective tax is against human rights and are willing to appeal all the way to European HR courts…

Lisa's opinion is that EBTs are illegal, but there is actually more case law supporting then notion that they are legal...so yes, it is just her opinion.

I don't think Sempra was a total victory though was it? If my recollection is correct - and it may not be - whilst it was decided that the employees did not get a tax charge from the payments made out of the trust it did appear that the payments made into the trust were not going to be a qualifying expense for CT purposes. (Last I recall the CT aspects of the case were ongoing - it's all about when the CT relief can be obtained because the contributions are "potential emoluments").

From Dextra it would appear that there is a potential bill to close companies operating EBTs for £100 mln of IHT.

However I do accept that correctly structured "schemes" whatever they may be can work. I suspect that they are probably unsuitable for the risk profile of a large number of their users but that is a very different problem.

[xoggoth]

If the BN66 appeal succeeds the rest of us will be kicking ourselves for not using the scheme. Maybe we can do it retrospectively, if retrospective tax is ok, why not retrospective tax avoidance?

[LisaContractorUmbrella]

We all have, many times…

Fact: EBT schemes are different to BN66
Fact: No one (AFAIK) has been done on an EBT scheme
Fact: there are already 2 Special commissioner rulings against HMRC on EBTs (Sempra and Dextra – HMRC did not even appeal against Dextra)
Fact: EBT schemes are going to be closed down via legislation in april 2011.

Not known: If the legislation is going to be retrospective or not….

I personally think not, but yes, outcome on BN66 case may have an impact.

But already some EBT scheme providers have said that retrospective tax is against human rights and are willing to appeal all the way to European HR courts…

Lisa's opinion is that EBTs are illegal, but there is actually more case law supporting then notion that they are legal...so yes, it is just her opinion.

Actually I did not say that EBT's are illegal. All I said was that if you work in the UK, are tax resident in the UK and live in the UK you are liable for UK tax and that, if you use an EBT your tax payment will just be delayed.

[LisaContractorUmbrella]

Did the OP start this thread as the basis for a free advertisement of their services?

I thought you had to pay CUK to advertise!?

Personally, I would touch an brollie with a barge pole but that's my informed choice.

No BB the OP did not start this thread to advertise and we are all well aware of your opinions on umbrella companies i.e. something close to Beelzeebub reincarnate
This was a genuine attempt to educate - yes there are loads of schemes out there and some work in some circumstances but I stand by my original comments that if you live, work and are tax resident in the UK you are liable for UK taxes.

[LisaContractorUmbrella]

Lisa's umbrella is also linked to an accountancy company for limited companies that deals with lots of contractors.

Yes, everyone here knows that we are sister company to SJD but I am not advertising their services either

I think she needs to buy more coffee.

Huh!?

[NotAllThere]

Yes, so all sign up with Lisa's umbrella and pay your two lots of NI like good little wage slaves.

Don't be daft. Set up a ltdco.

Did the OP start this thread as the basis for a free advertisement of their services?

...and we are all well aware of your opinions on umbrella companies i.e. something close to Beelzeebub reincarnate

Well, I agree with him about that. But I don't see any attempt in this thread to sell your evil wares. My reading is that you posted to expressean opinion and out of a desire to educate.

[BlasterBates]

The trouble with tax schemes is how do you know whether your particular tax scheme won't fail. Everyone thinks the tax scheme they're in is foolproof. Then there is also the problem that if it is foolproof, then you didn't earn anything otherwise you'd pay tax, so the question is do you really want to put your wealth in the hands of a stranger; of course you can sue, but you won't have any money so how do you go about it. The consequences are pretty dire when it does go wrong.

[sal626]

Actually I did not say that EBT's are illegal. All I said was that if you work in the UK, are tax resident in the UK and live in the UK you are liable for UK tax and that, if you use an EBT your tax payment will just be delayed.

Yes, I stand corected, you didn't say that....however, you say an EBT just delays tax payment.....is that a fact or your opinion? If it's a fact, can you please let us know what it is based on?