Current users of EBTs

[Fred Bloggs]

Call me cynical, but by any chance is there a particular scheme you've been looking at?

And now, the OP will tell us all about this fantastic scheme that is totally legit HMRC approved, and all his mates are using it, he can't understand why we aren't too. Etc....

[Bunk]

Call me cynical, but by any chance is there a particular scheme you've been looking at?

[ratewhore]

I'm going to start contracting on a 6 month contract initiall and the 85% versus 60% arguement would defintely help me take a better decision.

Just as an aside, my last years accounts came through. I expense very little but I still came out at roughly 75% of gross when I take into account CT, PAYE and SA tax.

It's not all bad being Ltd...

[Not So Wise]

This weeks Pre Budget Report, once again states:



You can find the details on the HMRC website

Beware

Have they not said that pretty much every single budget for last decade or so?

[ASB]

Hi,

I've read with interest many of the posts and threads on the inherent risks of going down the EBT or offshore routes.
I understand the risks that are potentially there.
In this thread I wanted to hear from genuine contractors only who are using that route and how they see their risks and how they plan to mitigate them.

I'm going to start contracting on a 6 month contract initiall and the 85% versus 60% arguement would defintely help me take a better decision. I cannot say in all honesty that the greed factor does not affect me so would defintely like to understand what is the exact risk I face.

Thanks,
DP

Not a user of one and therefore by your definition irrelevant, however by careful planning (and certain luck as to your particular status) you can get a retention of 80% through a UK Ltd.

If you are either non dom on non ordinarily resident you do have a number of different options available.

[MPwannadecentincome]

Hi,

I've read with interest many of the posts and threads on the inherent risks of going down the EBT or offshore routes.
I understand the risks that are potentially there.
In this thread I wanted to hear from genuine contractors only who are using that route and how they see their risks and how they plan to mitigate them.

I'm going to start contracting on a 6 month contract initiall and the 85% versus 60% arguement would defintely help me take a better decision. I cannot say in all honesty that the greed factor does not affect me so would defintely like to understand what is the exact risk I face.

Thanks,
DP

You will see lots of people point out the risks.

Only the sellers of these schemes point out the benefits as being 'low risk'.

I have not seen many posts from 'satisfied' EBT members.

Draw your own conclusions.

[Sally BFCA]

This weeks Pre Budget Report, once again states:

HMRC will be consulting on a package of deterrents and new tools to help HMRC tackle offshore tax evasion.

You can find the details on the HMRC website

Beware

[decisionpoint]

Thanks!
So my risk exposure is standard PAYE tax rates on the total value of my contract along with NI - is that a fair assumption? There could of course be interest charges on top of this.

As an alternate how does the expense route of umbrellat contractors work? Isn't that also something that the taxman would consider as potentially worth being scrutinized? And what if I don't have a lot of legit expenses - then I essentially end up paying normal PAYE - is that right?

[Mr.Whippy]

would defintely like to understand what is the exact risk I face.

You face the risk of an enormous tax bill landing on your lap.... not to mention maybe penalties and/or interest also.

Then again, I suppose that could also be said for those of us who believe they are outside of IR35

[decisionpoint]

Hi,

I've read with interest many of the posts and threads on the inherent risks of going down the EBT or offshore routes.
I understand the risks that are potentially there.
In this thread I wanted to hear from genuine contractors only who are using that route and how they see their risks and how they plan to mitigate them.

I'm going to start contracting on a 6 month contract initiall and the 85% versus 60% arguement would defintely help me take a better decision. I cannot say in all honesty that the greed factor does not affect me so would defintely like to understand what is the exact risk I face.

Thanks,
DP