Avoiding Tax

[LisaContractorUmbrella]

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?

Let's say it is an informed opinion which I am quite happy to substantiate if you are happy to explain under exactly what circumstances someone who lives in the UK, works in the UK and is UK tax resident is NOT liable to pay UK tax as that was the opinion I hold that you originally contested

[chef]

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?

sounds like someone who has an EBT and is trying to convince themselves that by convincing others they can sleep better at night because it must be ok..

handy hint: Nightol

[sal626]

Let's say it is an informed opinion which I am quite happy to substantiate if you are happy to explain under exactly what circumstances someone who lives in the UK, works in the UK and is UK tax resident is NOT liable to pay UK tax as that was the opinion I hold that you originally contested

I was never contesting your opinion, I was just trying to point out that what you are posting is not fact but an opinion (an informed opinion, as you say)....which of course everyone is entitled to.

[sal626]

sounds like someone who has an EBT and is trying to convince themselves that by convincing others they can sleep better at night because it must be ok..

handy hint: Nightol

I'm not trying to convince anyone.....just pointing out what is fact and what is opinion...

In fact, I've already pointed out the risks with EBT and legislation being made retorspective in a previous post...

I sleep fine at night...thanks for your concern

[LisaContractorUmbrella]

I was never contesting your opinion, I was just trying to point out that what you are posting is not fact but an opinion (an informed opinion, as you say)....which of course everyone is entitled to.

OK, so if it is not a fact, please explain under what circumstances someone who lives in the UK, works in the UK and is tax resident in the UK would not be liable for UK taxes?

[sal626]

OK, so if it is not a fact, please explain under what circumstances someone who lives in the UK, works in the UK and is tax resident in the UK would not be liable for UK taxes?

How would I know?? I am not educated in tax law or accoutancy to provide an informed opinion

[LisaContractorUmbrella]

How would I know?? I am not educated in tax law or accoutancy to provide an informed opinion

So, you cannot actually say that what I said in the OP is not fact and just an opinion?

[sal626]

So, you cannot actually say that what I said in the OP is not fact and just an opinion?

Nope...but I agree with what you said above that it is an "informed opinion"...

[LisaContractorUmbrella]

Nope...but I agree with what you said above that it is an "informed opinion"...

The informed opinion was regarding whether EBT's just actually delay the payment of tax rather than avoid it. Being liable for UK tax if you live, work and are tax resident in the UK is fact.

[Vallah]

Well I work for an EBT provider, and must take issue with the opening post, especially the statement "there is no way that you will take home 85% of your income legally.".

Our contractors pay UK tax on both a salary element AND EBT element, and all income is fully disclosed to HMRC. While it obviously isn't as much tax as HMRC would like to receive from somebody paying full PAYE and NI, it is ALL disclosed and there is nothing illegal about it. The right to use existing lax laws to minimise a person's tax is perfectly legal. I can understand that many people on here will see such schemes as too risky given the Montpelier case, and that's their choice and perfectly understandable, but the fact remains that the use of EBTs is perfectly legal and used by thousands of contractors to minimise their tax burden. In 5 years of our scheme, none of our contractors have had any problems with HMRC as a result of using EBTs.

It's also worth pointing out the provisions of BN66 do not apply to EBT schemes. It may well be that HMRC takes action in the next budget to make EBTs ineffective, in which case there will undoubtedly be other schemes that take their place.