Press coverage of IOM EBTs

[ads1980]

I guess that one day they will go out of business and write off the loan or it will be forgotten but it sounds like a ticking time bomb to me....

It would be interesting to hear from anyone else using these schemes or people that have come out of them and what the repercussions have been. I have heard all kinds of different things and to be honest, that is mainly why I have come out of mine and started up my own Ltd.

[Wanderer]

So how did you go about declaring it and what happened? Did you have to pay full tax? I have not officially told my provider I am leaving yet so what would stop me from just not telling them and saying for example that my contract has been terminated? Would this make any difference?

I guess that one day they will go out of business and write off the loan or it will be forgotten but it sounds like a ticking time bomb to me....

[ads1980]

The moment I left my provider, I was told to declare the income as it became taxable, you might like to check this out. In my case I was able to, but for some this may be an issue if in for many years

So how did you go about declaring it and what happened? Did you have to pay full tax? I have not officially told my provider I am leaving yet so what would stop me from just not telling them and saying for example that my contract has been terminated? Would this make any difference?

[scott_free]

Hi Smckeown,

I was with an IOM EBT scheme which I am just in the process of leaving as I have set up my own Ltd. I have not yet told them I am leaving though until they have paid all my money to me. Do you have a reason for leaving them? Mine was purely down to the fact that I never knew when I was going to be paid and their customer services are terrible. I thought it best to set up on my own so I am more in control.

The moment I left my provider, I was told to declare the income as it became taxable, you might like to check this out. In my case I was able to, but for some this may be an issue if in for many years

[ads1980]

A lot of the information on the internet is unreliable/incorrect. If yo uare worried about the risk, I would just leave and set up your limited company.

Hi Smckeown,

I was with an IOM EBT scheme which I am just in the process of leaving as I have set up my own Ltd. I have not yet told them I am leaving though until they have paid all my money to me. Do you have a reason for leaving them? Mine was purely down to the fact that I never knew when I was going to be paid and their customer services are terrible. I thought it best to set up on my own so I am more in control.

[SackmanandCo]

A lot of the information on the internet is unreliable/incorrect. If yo uare worried about the risk, I would just leave and set up your limited company.

[smckeown]

Actually i'm looking for justification (public articles to highlight risk/failures) for leaving one. Strange request I know, but there is some logic

[SackmanandCo]

There are loads of providers out there doing IofM EBT's. But how many them have a top quality reputation?
It is tax avoidance and therefore has some risk but as long as you are with one of the top providers, the risk is comparatively low.

[smckeown]

Hi,
Does anyone have links that highlight the risk or failure of IOM EBTs ? I've done plenty of searching but only seen the following article:

Shout99 : Expert analysis: Isle of Man IR35 avoidance strategy flawed

I'm keen to receive material highlighting their rick for my personal use

cheers
sean