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It is only recently that an offering which takes advantage of the opportunities afforded by off shore tax schemes, has been developed and offered to the lower salaried contractor. Until recently these arrangements have been the privilege of the super rich, but now through the application of the same laws, efficiently processed and then offered to a more mainstream audience, it is possible for you to similarly benefit.

Our solution is registered with HMRC in the UK in respect of PAYE. You will be paid for the hours worked on contracts in which you are placed, usually at 15% of gross contract value or £5.60 per hour, whichever is the greater. This pay is then subject to PAYE and NICS.

The full contract value will become the turnover of our consultancy supply operation, and as such the revenues obtained are available to the Company for settlement into the Employee Benefit Trust.

When you are accept employment with our recommended Employee Benefit Trust, you will by virtue of that employment become entitled to benefit in turn (at the Trustees discretion) as a beneficiary of the Employee Benefit Trust.

The Trustees of the Employee Benefit Trust are then empowered to make loans to its Employees; such loans are assessed by HMRC as benefits in kind at a rate of 6.25%, this value is then in turn assessed at 22% or 40% (this gives and effective tax rate on the loan amount paid out of between 1.3% and 2.2%).

The loans paid by the Employee Benefit Trust are the mechanism that provide for your enhanced net income retention.

Salary is calculated, and loans are made on a monthly basis, therefore effectively the Employee Benefit Trust only has access to funds equal to one month salary at any one time. The delay between invoice and payment is minimal compared to an Umbrella Company solution.

What if I wish to use my current Ltd or Umbrella Company?

Taking advantage of an EBT requires that you are paid outside of any existing Umbrella company arrangement. As a director of a UK Ltd company we can also accommodate your payroll requirements. You then receive an additional benefit of avoiding the costly process of compiling every single expense in order to reduce profit, and also decreasing the tax burden incurred through using dividend payments to obtain the profits created.

Is this Payroll Solution IR 35 compliant?

IR 35 legislation does not cover the use of an EBT payroll arrangement – this means that there is no obligation upon you to fall within the scope of IR35 regulations.

What happens at the end of my contract?

You remain an employee as far as the benefit trust is concerned, however you will cease to be eligible for any loan payments until you commence working once again.

For how long will I be able to use this EBT?

A change in tax legislation to prohibit the use of an EBT arrangement cannot be ruled out in future.
Because of the nature of off shore tax legislation this would be a long drawn out procedure which would take many years to accomplish. There is also the consideration that the prime beneficiaries of current off shore tax legislation (the rich and ‘connected’) are the same people who would have to sponsor its removal.

Is there any rush to sign up for this EBT?

No, and we fully recommend you to carry out your own due diligence and satisfy yourself of the wisdom of using our Employee Benefit Trust. However the longer you postpone the decision, the longer you will be wasting 20% of your contracted income, which is lost before you have even received it.  It is much more fun in our experience to waste money on driving fast cars or taking unnecessary luxury holidays.

How do I sign up?

The sign up process is simple and quick. Simply fill in our on-line form and you will be guided through the requisite paperwork by one of our consultants, who will call back at a time requested and convenient for you. The call should last around 15 minutes, by which time you will have all the information you should require to reach a decision. If you wish to take longer over this important decision that is of course your prerogative, it is however an easy decision to reach and a process which is low o

Do you wish to take advantage of the fall in property prices to upgrade your accommodation? Would you instead choose to:

• 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.