Tax Owed due to Employee Benefit Trusts

Facing an HMRC Tax Demand on an Employee Benefit Trust? APN Issued?

Is HMRC Aggressively Pursuing You or Your Company for Tax Owed on Employee Benefit Trusts?

<It is estimated that c.80,000 APNs have been sent out by HMRC to reclaim c.£2.1 billion in unpaid taxes>

<Are you or your business facing insolvency/bankruptcy as a result?>

<From April 5th 2019 the Loan Charge Starts when HMRC wants the Tax to be Repaid>

  • Employee Benefit Trusts (EBTs) have been widely used for the last 20 years by many employers as a tax efficient alternative to cash bonuses. HMRC has long challenged the tax status of EBTs, and has now won the battle to make companies make payment for tax due on monies paid into one, often using Accelerated Payment Notices (APN).
  • HMRC recently won its landmark case – for £46.1 million tax owed – against Glasgow Rangers for its use of EBTs.
  • The April 5th 2019 Loan Charge. HMRC’s view is that EBT’s and similar schemes were loans that were never intended to be repaid. As a result, HMRC considers them to be no different to normal income and that they are taxable. HMRC is encouraging people to come forward and settle their tax affairs before a charge on these outstanding loans comes into effect on 5 April 2019.
  • Many thousands have not settled

Are you Struggling to Make Payment?

We Can Help

<Take Action Now to Avoid Insolvency/Bankruptcy>

Contact us for Help and Advice if you are struggling to Pay an EBT Tax Demand with APN from HMRC.
FREE Initial Guidance and Consultation

  • If you or your business is facing a large and unexpected tax demand because of an Employee Benefit Trust, it could quickly cause insolvency due to disrupted cash flow.
  • Our Insolvency Practitioners can review your situation, give guidance and advise your business on how best to manage an EBT Tax demand, with APN, from HMRC.

<Accelerated Payment Notices and Follower Notices – 50% Penalty can be Applied>

  • HMRC initially challenged the legality of EBTs by tribunal. These could take years to decide, but HMRC’s powers were increased significantly in 2014 by the introduction of Accelerated Payment Notices (APN). An APN requires a company to pay tax up front on an EBT, pending a tribunal hearing, rather than after a tribunal.
  • Follower Notices have now been introduced which offer recipients the opportunity to agree to settle the disputed tax under the Settlement Terms offered by HMRC in November 2017.
  • However, if taxpayers do not settle Follower Notices and they subsequently lose their case, HMRC can apply a penalty of 50% of the tax found to be payable.

Contact us for Help, Guidance and Advice if you plan to
Dispute your APN and/or Follower Notice.

  • If you cannot pay HMRC the tax due under an EBT, contact us or call us on 0208 088 0633. The initial meeting is FREE.
  • If you wish to challenge HMRC’s decision and dispute an Advanced Payment Notice or Follower Notice, we can put you in touch with lawyers and accountants who are experts in this area. They will advise on the merits of paying APNs or Follower Notices, whilst we advise on how best to pay the tax owed, helping to avoid insolvency.

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