Loans from EBTs and other Trusts

[geoff from contracta IOM]

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.

What exactly would be the difference between SJD or similar recommending a Ltd. Co. and me recommending an SEBT ?

Most accountants are not tax specialists. We only allow chartered tax advisers, tax barristers or accountants with proven tax specialism to audit our scheme on behalf of their clients as in my experience most accountants do not have the knowledge to make an assessment and most wouldn't claim to.

DR is right about Pump Court Chambers being the pinacle but there are many good less costly advisers who can provide an opinion and test the validity of the entire mechanism.

[BlasterBates]

What exactly would be the difference between SJD or similar recommending a Ltd. Co. and me recommending an SEBT ?

Most accountants are not tax specialists. We only allow chartered tax advisers, tax barristers or accountants with proven tax specialism to audit our scheme on behalf of their clients as in my experience most accountants do not have the knowledge to make an assessment and most wouldn't claim to.

DR is right about Pump Court Chambers being the pinacle but there are many good less costly advisers who can provide an opinion and test the validity of the entire mechanism.

Scheme providers on the whole do not communicate the risks to contractors.

High street accountants however do point out risks to their clients.

That is my experience.

[sal626]

Scheme providers on the whole do not communicate the risks to contractors.

High street accountants however do point out risks to their clients.

That is my experience.

Ironically, pre dec 2010, my "high street" accountant (who is also a friend of mine) was promoting an EBT scheme to contractors (although not to me as I was not contracting and working on plan B then). He claimed he had done his due diligence and discussed with a tax lawyer.

Also, my wife is a dentist and self employed, and her "high street" accountant was just a few months ago also promoting a scheme using trusts (according to him not an EBT). My wife didn't pursue as she only works part time and would not be eligible. And I have no idea what due diligence the accountant would have done or not done...

So I wouldn't take high street accountants at thier word either. As Geoff and DR have pointed out, if you do want to get solutions reviewed, best to go to a tax specialist....

[DonkeyRhubarb]

Scheme providers on the whole do not communicate the risks to contractors.

High street accountants however do point out risks to their clients.

That is my experience.

Common sense alone should tell people that 85% return carries much higher risk than say a brolly netting 55%.

Some High st accountants sold the BN66 scheme, albeit mainly to property developers.

[BlasterBates]

Well I can see for a property developer the risk maybe worth taking but not for a contractor who stands to lose everything. There's a pearl of wisdom which is never to bet the farm on a business decision. Most reputable accountants will talk through the risks with you.

[LisaContractorUmbrella]

What exactly would be the difference between SJD or similar recommending a Ltd. Co. and me recommending an SEBT ?

Most accountants are not tax specialists. We only allow chartered tax advisers, tax barristers or accountants with proven tax specialism to audit our scheme on behalf of their clients as in my experience most accountants do not have the knowledge to make an assessment and most wouldn't claim to.

DR is right about Pump Court Chambers being the pinacle but there are many good less costly advisers who can provide an opinion and test the validity of the entire mechanism.

Actually Simon Dolan from SJD is ATII and ATT

[DonkeyRhubarb]

BN66

For information, we have just launched a lobbying campaign and website.

http://forums.contractoruk.com/accou...ct-2008-a.html

If you know anyone affected by BN66, please pass this on.

Cheers
DR

[geoff from contracta IOM]

Actually Simon Dolan from SJD is ATII and ATT

The point I was making is neither scheme providers nor contractor accountants could be considered impartial.

I have no doubt that Simon is extremely competent and wasn't referring to any accountant specifically.

[LisaContractorUmbrella]

The point I was making is neither scheme providers nor contractor accountants could be considered impartial.

I have no doubt that Simon is extremely competent and wasn't referring to any accountant specifically.

Actually what you said was "most accountants are not tax specialists" and I could see that would be a reasonable justification for them not being qualified to comment on the various tax arrangements available; I was just pointing out that actually SJD are

[BlasterBates]

Paul Baxendale-Walker who put together the Rangers FC EBT scheme was an expert in law, who wrote books on law with his QC colleague:

Paul Baxendale-Walker - Wikipedia, the free encyclopedia


A fat lot of good that did for Rangers FC.