As confirmed at the June Budget, the Government will introduce legislation to tackle arrangements involving trusts or other vehicles used to reward employees, which seek to avoid or defer the payment of income tax or National Insurance Contributions (NICs), including to provide a tax-advantaged alternative to saving beyond the annual and lifetime allowances available in a registered pension scheme.

A further announcement will be made shortly.’

This statement published in the week of the 6th December, was followed by a further announcement regarding an ‘anti-forestalling provision’ which in effect stated the intention of the inland revenue to apply the new (and as yet un-released and without parliamentary approval) legislation with effect from the 9th December. Using a neat bit of legislative time travel, the Inland Revenue has at a stroke, made the Employee Benefit Trust obsolete as a vehicle for contractors to improve their retention.

Our solution is legal, falls outside of the scope of MSC and IR35 legislation and we ensure that all tax deductions are taken as they fall due. We consider our product to be one of the most robust available in the marketplace which also produce some of the best retention rates.

We have contractors on site at many major employers including Credit Suisse, RBS, Morgan Stanley, the FSA, the BBC and the Financial Ombudsman. Many contractors are now choosing our solution, rather than using ‘umbrella’ companies, largely because the single-person and ‘expenses’ solution are no longer as tax efficient as they were – and are now coming under a greater level of scrutiny from HMRC.

You need a solution which is simple, compliant, robust in respect of any future legislative changes, and which gives your business a competitive advantage. Talk to us to learn how to move your business forward in 2011.

It is hard to talk about this benefit – simply because it is so clearly obvious why this is important! The take home net pay resulting from using an EBT is around an additional 20% for most contractors, which is the same as working for 5 days and being paid for 6, or to put it another way you could instead work for 40 weeks a year in place of 48. Where would you go with all that free time?

There are no expense claims to keep track of

Which contractor does not find expense claims to be a right royal pain? How much would you like to know that you would never need to waste time and energy dealing with this unwanted and un productive administrative overhead?

IR 35 does not figure in the picture

Rather than have to qualify as a contractor through avoidance of falling within the IR35 legislation, which is designed to ensure that contracting does not yield appreciably more take home pay than PAYE, you can also fall outside of all of this legislation and therefore not worry about ever being re-classified and hit with an unexpected tax bill.

There are no set up fees

Unlike previous high yield schemes, we can get you started with no up-front costs, you only pay fees upon use of our service.

We do not make use of double taxation treaty arrangements, we do not and have not ever operated such a scheme.

Our arrangement is founded in the basics of English common law, this type of arrangement continues to be used by many high net worth individuals, in addition to the many contractors who are also able to use it.

• Work fewer hours, perhaps taking that long planned around the world trip without sacrificing any of your hard earned luxuries?
• Buy a share in a light aircraft and spend your free time souring free above the clouds?
• Join a fractional ownership scheme for a yacht?
• Pay off outstanding loans?

These are not mere idle day dreams. You really will have to decide what to do with your pay increase. Because it is guaranteed, you will know in advance exactly how much extra your take home pay will be each and every month, and can start thinking about what to do with it right now.