Employee Benefit Trusts – Taking Action

If you have an Employee Benefit Trust then you really do need to take action now.

You may have received an unwelcome letter from HMRC concerning the possible Benefit HMRC say you have enjoyed? Maybe you are even being asked for a rather large sum of money – say about 50% of the EBT value to settle the issue of any benefit you may have enjoyed. And if you delay, there are penalties to be added.

If you haven’t received this unwelcome post and you are the beneficiary of an EBT, then it probably only a matter of time.
The issue is simple, EBTs used to be a tax alternative to ‘income’. Changing legislation has negated the benefits and worse the EBT in its original form represents a toxic tax liability.

Turning to your introducer may not be the best solution – He or she may well have simply passed you on to an non-connected third party providing an EBT solution (collecting an introducer fee on the way).

Given the problems that exist now for EBT Members – it would nice to find a solution to simply make them go away. But eliminating it requires significant tax knowledge plus a substantial understanding of Trust law.

Please make sure you consult someone who really understands the issues involved or you may find your problems multiplied!

We do know what we are doing and we have acted for a wide range of clients to resolve their EBT issues.

The first issue is always to properly understand the client’s position and all associated problems that has been thrown up by the creation of the EBT.

All planning to achieve a satisfactory solution necessarily has to be bespoke, as personal circumstances dictate what path of action to take.
So if you are in this position, and you prefer to ignore what is actually required to put your financial affairs in order – don’t call us.

However if you genuinely want to resolve your EBT and associated tax issues DO contact us now.

In most cases we are able in most cases to consign EBT’s to the dustbin of history.

We have resolved over 30 EBT’s and have a further 12 cases in process. We do have a rigorous process for dealing with EBT’s that works exceptionally well.

We have only given up on one EBT enquirer, as they were taking “advice” from someone who had spent 20 minutes on the web – we clearly could not compete with that!!

If you have an adviser that only knows what he knows, but does not  know what we know – then you may be told things like:-

“I can assure that there is NO interest payable on loans from EBT’s” (only to be telephoned later) – “Oh yes you were right – my mistake!”

Or even better…

“Put all your assets in trust and leave the country!”

Or to have been advised by their accountant that “We have reviewed your file and (although we put you into the EBT in the first place) you now need to make a £390,000 settlement to HMRC.” A nice retirement present!!

A better option is to visit a specialist who can not only advise you on the best action regarding EBT, but also assist you in building stronger foundations for your financial future. Why because we have often found that indifferent EBTs are accompanied by poor financial planning.

About Ray L Best

Ray Best has had over 30 years experience of advising on complex financial matters. A published author of a number of books including “Partnership and Shareholder Protection”, Inheritance Tax Simplified”. We provide an initial meeting at no cost and only engage with clients when we can add significant value.
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