HMRC EBT settlement opportunity
Following the introduction of the disguised remuneration rules in 2011, HMRC promised to vigorously pursue existing employee benefit trusts (EBTs) on the basis of its long-held view that income tax and National Insurance contributions (NICs) should have been paid when funds were allocated to an EBT.
In 2011, HMRC launched the EBT Settlement Opportunity, which offered employers the opportunity to settle such tax liabilities, thereby avoiding the risk of a time-consuming and costly HMRC enquiry and potentially allowing for distributions to be made from the EBT and the EBT to be wound up.
It is clear from HMRC’s highly publicised recent settlement with JP Morgan Chase and from experience acting for employers, employees and trustees that settlements can be made on extremely advantageous terms. The settlement opportunity therefore warrants detailed consideration…
If you are registered and logged in to the site, click on the link below to read the rest of the Withers briefing. If not, please register or sign in with your details below.
News from Withers
News from The Lawyer
Briefings from Withers
The EU Parliament has voted to introduce a trust registry as part of new anti-money laundering provisions.
From 6 April 2014, LLP members will be taxed as employed if less than 20 per cent of their remuneration is linked to the overall profitability of the LLP.
Analysis from The Lawyer
A merged Withers and Speechly Bircham would have scaled The Lawyer’s UK 200 with a turnover of about £170m, and created one of the world’s largest specialist private client teams. So what went wrong?