EBT & other loan schemes

[BlasterBates]

Even if a scheme has a QC opinion that it's legal, you'll only actually know when the judge actually decides after a long and protracted court case.

But in any case, what's to stop a government simply putting a punitive tax on loans as a benefit. They can be very specific about it as well, so that it targets the EBT schemes. This wouldn't have to be retrospective, simply becuase they just apply this tax on an annual basis. Now that's just hypothetical, but how else are they going to close this loophole? Everyone could pay back the loans to stop it, but then how are they going to get their money?

[Vallah]

I don't think that anyone can say that such schemes will NOT be "stopped" retrospectively. It will depend on the level (or perceived level) of "artificiality".

Plus I think that regardless of what (if any) legislation is introduced in the March 2011 budget, HMRC will have grounds to "attack" these schemes under the "fraudulent tax avoidance" banner (see the opening post to this thread). Maybe the mere advertisement of "85% take home pay" will be enough to defeat these schemes. BEST ask your EBT scheme provider if the tax barrister knows about and/or commented on such advertising.

I can't speak for any other firm, but there's nothing fraudulent whatsoever about anything we do. Everything is fully above board and disclosed.

[LisaContractorUmbrella]

There has been a number of people post on this board over the years promoting schemes which promise a very high retention rate of earnings - to my knowledge no-one has ever come on here and explained how their scheme actually works. If they are so legally watertight and HMR&C approved what's wrong with disclosing the details?

[Vallah]

Lots of people have explained how they work, I just think that you don't understand them very well.

[LisaContractorUmbrella]

Lots of people have explained how they work, I just think that you don't understand them very well.

Perhaps you could post a link?

[LisaContractorUmbrella]

No linkys???

[sal626]

If you’re that curious, why don’t you just ring the scheme provider(s) and ask them?

[LisaContractorUmbrella]

If you’re that curious, why don’t you just ring the scheme provider(s) and ask them?

I could do that but I would prefer something in writing

[sal626]

Most of them will provide it in writing

[ChimpMaster]

Most of them will provide it in writing

I seriously doubt it, due to confidentiality agreements which are in place. You will get some usual marketing blurb, which on the whole is so generic you might as well just read it on their website(s).

Furthermore, any scheme provider is unlikely to provide details of the mechanism with which they operate because it could be competitively damaging to them. Basically they wouldn't want any other provider to copy it.