Loans from EBTs and other Trusts

[BlasterBates]

Ummmmmmmmm no it doesn't , and I wasn't talking about IOM companies or DTA's or EBT's for that matter

Well suffice to say anyone should get advice from a practising UK chartered accountant or lawyer and trust that advice.

I'ms sure you would agree with that.

[DonkeyRhubarb]

I don't think most people accept it blindly but what can you actually DO??? If you fight a decision and you win - what do you get? Your legal costs reimbursed? Compensation for anguish and anxiety?

Part of the typical 10% fee you pay to the promoter is to cover the costs of any legal action.

Of course there is always the risk that the promoter might shut up shop and leave you holding the baby.

That's why it pays to pick your promoter very carefully. Even then there are no guarantees but that's about all you can do to try and protect yourself.

A lot of Montpelier clients slag them off but at least they're still around not like some other fly-by-night cowboys I could mention.

[geoff from contracta IOM]

Well suffice to say anyone should get advice from a practising UK chartered accountant or lawyer and trust that advice.

I'ms sure you would agree with that.

100% agree with that but don't ask a high street accountant most won't understand what they are looking at, get specialist advice from someone with extensive experience in detailed tax planning.

[LisaContractorUmbrella]

100% agree with that but don't ask a high street accountant most won't understand what they are looking at, get specialist advice from someone with extensive experience in detailed tax planning who does not have a vested interest in the scheme they are recommending

[geoff from contracta IOM]

100% agree with that but don't ask a high street accountant most won't understand what they are looking at, get specialist advice from someone with extensive experience in detailed tax planning who does not have a vested interest in the scheme they are recommending

Exactly not someone who runs an umbrella company

[LisaContractorUmbrella]

Exactly not someone who runs an umbrella company

Quite But then again I only advise on umbrella stuff - I just question everything else - call it natural curiosity

[DonkeyRhubarb]

The majority of schemes are endorsed by the country's leading Tax Counsel. Most seem to come from here:

Pump Court Tax Chambers | tax lawyers

IMHO, it is pointless getting anyone of lower standing to check out the arrangements.

[BlasterBates]

I would be very suspicious of anyone who is remunerated to give an endorsement and I would take advice from an independent tax specialist.

I think an accountant such as SJD would be in a position to give someone good advice.

[DonkeyRhubarb]

I would be very suspicious of anyone who is remunerated to give an endorsement and I would take advice from an independent tax specialist.

I think an accountant such as SJD would be in a position to give someone good advice.

I doubt that the likes of SJD would be qualified to give a legal opinion on a scheme.

Only another Tax QC could do this and that would cost ££££.

[BlasterBates]

Well then best not to get involved with a scheme. No-one would go and bet their entire earnings in Las Vegas, but yet that is exactly what they do when they enter a scheme. There's a difference between a multi-millionaire betting say a few hundred grand on trying to avoid tax, and a contractor ends up bankrupt because a judge has a different opinion to the QC who endorsed the scheme.

I can't imagine that Rangers football club's scheme wasn't also endorsed.

After all it was a loan it wasn't income. The argument from HMRC was that in spite of the fact it was a loan it was to be taxed as PAYE. So beware of endorsements.

What a high street accountant can do is make you aware of the risks involved. No QC can categorically state a scheme is 100% legal.