Originally posted by craig1
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Loans from EBTs and other Trusts
Collapse
X
Collapse
-
-
Originally posted by Vallah View PostThe law was changed with respect to the use of EBTs in December. I didn't notice any "punitive retrospective taxation" aspect of the change in law.Comment
-
Originally posted by LisaContractorUmbrella View PostSo presumably then you avoid the legislation introduced in April 2011 by calling the individuals who use your scheme 'self-employed' despite the fact that you determine their level of earnings
In terms of Geoff's arrangements as I understand them the "level of earnings" isn't so much a determination as a contract. Very simply the individual contracts with an offshore entity for a monthly rate of £1500 on a self-employed basis. Their services are then peddled via whatever intermediaries to an end user who pay the market rate. The balance, less fees, makes its way to the Trust.Join the No To Retro Tax Campaign Now
"Tax evasion is easy: it involves breaking the law. By tax avoidance OECD means unacceptable avoidance ... This can be contrasted with acceptable tax planning. What is critical is transparency" - Donald Johnston, Secretary-General, OECDComment
-
Originally posted by Emigre View PostFirstly Lisa, thanks for posting the link to Hector's new plans. As a sufferer of S58 FA2008 I'm tempted to point out some of the blatant economies of truth in the document but this is the wrong place.
In terms of Geoff's arrangements as I understand them the "level of earnings" isn't so much a determination as a contract. Very simply the individual contracts with an offshore entity for a monthly rate of £1500 on a self-employed basis. Their services are then peddled via whatever intermediaries to an end user who pay the market rate. The balance, less fees, makes its way to the Trust.
Yep I think you're right but, if that is the case, I fail to see how it will fall outside new legislation. If the individuals are 'peddled out' by the OIM company then they are essentially employees and the trust will fall foul of the recent EBT legislation.Comment
-
Originally posted by LisaContractorUmbrella View PostNo probs Emigre - glad to help.
Yep I think you're right but, if that is the case, I fail to see how it will fall outside new legislation. If the individuals are 'peddled out' by the OIM company then they are essentially employees and the trust will fall foul of the recent EBT legislation.Comment
-
Originally posted by LisaContractorUmbrella View PostNo probs Emigre - glad to help.
Yep I think you're right but, if that is the case, I fail to see how it will fall outside new legislation. If the individuals are 'peddled out' by the OIM company then they are essentially employees and the trust will fall foul of the recent EBT legislation.Comment
-
Originally posted by geoff from contracta IOM View PostYou cannot be a self employed employee, the two definitions are totally incompatibleComment
-
Originally posted by geoff from contracta IOM View PostYou cannot be a self employed employee, the two definitions are totally incompatibleComment
-
Since BN66, the only feasible scheme now is through loans. So it seems unlikely that these new rules aren't targeted at EBT's. The fact is when these new rules come in, there will be no difference between an offshore and an onshore scheme, that's the whole idea. It would be very naive to think that any offshore scheme isn't now going to be targeted. The new rules are clear they reserve the right to ignore your offshore status.I'm alright JackComment
-
Originally posted by LisaContractorUmbrella View PostAgreed Geoff. What I am saying is that just because you label someone as self-employed, it doesn't mean to say that they would be considered so by the powers that be. Can you also confirm whether the individuals are working in the UK and resident in the UK?Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment