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An Employee Benefit Trust is a trust set up specifically to hold assets to provide benefits to employees and their families. Our team at FWJ are experts in all tax related matters. Call us today to speak to a friendly member of our team.

An Employee Benefit Trust has in recent years been used as a tax efficient method of enabling payments or distributions to employees by loaning the income payable to them to the Employee Benefit Trust which, as a loan, is not subject to tax.

The use of an Employee Benefit Trust in this way is considered a tax avoidance scheme.

  • the use of an Employee Benefit Trust to pay employees via loaned funds has in recent years been subject to a great deal of scrutiny by HMRC and, as a result of various changes to the tax legislation, is no longer capable of providing the tax savings it claims to provide;
  • their use lead to the tax payer and employee recipient being faced with claims for unpaid taxes (including penalties, interest and surcharges) or loan charges of up to 50% where such arrangements remained in place by April 2019.

At Francis Wilks & Jones we have considerable experience of tax related and tax dispute matters. We are experts in negotiations with HMRC, including Accelerated Payment Notices, Personal Liability Notices, VAT security or any other claim – including appeals to tax tribunals or insolvency claims by liquidators. Please call any member of our tax disputes team for your consultation now.

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