Employee Benefit Trusts Targeted

Employee Benefit Trusts (EBT) remain within the spotlight as yet another scheme is closed by a tribunal. It is clear now that these schemes don’t work and HMRC is using its power to shut them all down.
In the past the scheme administrators were re-establishing themselves time and time again but in this latest tribunal the scheme administrator has also been made bankrupt.
The treasury has confirmed on their website that HMRC will always challenge this type of tax planning and the latest tribunal decision sends a clear message to all NOT to get involved.
I feel this is long overdue and about time giving clarity to an uncertain area that is still marketed heavily offering excessive net returns of 90%.

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The Office of Tax Simplification (OTS) Reports on Employee Benefits

The office of Tax Simplification (OTS) has published its latest report on employee benefits and hopefully the recommendations will be adopted by HMRC.

The areas OTS are looking at are accommodation benefits, termination payments, removal expenses and long service awards although other items like mileage needs addressing.

I think the accommodation review is long overdue and will help workers understand the complex rules where employers provide short term accommodation, especially for overseas workers coming to the UK.

I welcome the work the OTS does and its objective to try and remove red tape and simplify our tax system can only assist small and medium businesses who cannot afford tax experts.

The report is being treated as a consultation and encourages people to contribute – view report

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