Offshore Option

[Vallah]

That would never do would it?

[LisaContractorUmbrella]

It can't be. An EBT is a trust for the benefit of the employees of a specific company. If there isn't a company employing anybody, then you can't set up an EBT.

And I am sure that loads of people said the same thing after the introduction of IR35 - "I can't be an employee because my contract says I am in business on my own account" - HMR&C seemed to have other ideas

[Vallah]

And I am sure that loads of people said the same thing after the introduction of IR35 - "I can't be an employee because my contract says I am in business on my own account" - HMR&C seemed to have other ideas

It still isn't an EBT though.

[NotAllThere]

... For obvious reasons I also won't go into the details here as the Mods wouldn't appreciate it ...

No. It's fine. Please disclose all the details of the scheme showing exactly how it works. We won't mind that at all. Be something of a first, in fact.

[kettlehead]

A very confused contractor with too many oprtions

just out of interest, if the apparent (way around) EBT's is to become self employed and then take the loans to avoid the EBT, why doesn't everyone just become self employed and offset there expenses thus reducing their tax liabilty and increase their take home pay ???

[Vallah]

No. It's fine. Please disclose all the details of the scheme showing exactly how it works. We won't mind that at all. Be something of a first, in fact.

I've looked at their website, and I have to say it's fairly detailed. What exactly are the details that you think haven't been disclosed?

[malvolio]

I've looked at their website, and I have to say it's fairly detailed. What exactly are the details that you think haven't been disclosed?

The bit that is unclear is how you prove beyond doubt that the income an individual receives in the UK - be it salary, loan, free access to credit, disposable goods or magic beans - is exempt from PAYE and NICs under the provisions of the recent changes and remains so until you die. After all, if it's fully legal, it is easily accessible to anyone to do without hiding behind a QC's possibly biased opinion. Explain that, clearly and concisely, and collectively you may have some credibility.

[kettlehead]

a confused contractor

if there is so much risk with these types of schemes why doesnt everyone just simply operate as a self employed person, offset their expenses and reduce the tax that way ??

[Vallah]

is exempt from PAYE and NICs under the provisions of the recent changes

The new rules that relate to employment income you mean?

[malvolio]

The new rules that relate to employment income you mean?

No, the new rules that relate to earned income of any kind.