What is an Employee Benefit Trust?

An Employee Benefit Trust is a trust set up specifically to hold assets to provide benefits to employees and their families.  An Employee Benefit Trust may has in recent years been used as a tax efficient method of enabling payments or distributions of income due to employees where such payments may otherwise be subject to tax.  

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.

Their use is now almost certain to lead to the tax payer and employee recipient being faced with claims for unpaid taxes (including penalties, interest and surcharges) or charges on the loans made up to 50%, where such arrangements remain in place as at 5  April 2019.

At Francis Wilks & Jones we have considerable experience of 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 on 020 7841 0390.  Alternatively email us with your enquiry at info@franciswilksandjones.co.uk and we will call you back at a time convenient to you.